- Adam Myers, Credit Agricole (based on CNBC)
Despite all expectations, the EUR/JPY cross edged down on Friday. The Euro lost 35 pips against the Yen, although the pair was seen appreciating for most of the day. Technical studies retain strong bullish signals, suggesting a rebound today. Nonetheless, we anticipate the single currency to weaken today and cross the 134 level; however, a dip beyond 133 is highly unlikely, as it is backed by the immediate support level, namely the weekly S1. We should not rule out the possibility of a rally towards at least 135 amid Eurogroup Meeting results.
Today only 40% of traders are long the Euro, whereas the number of orders to acquire the single currency remains unchanged at 48%.