- Credit Agricole (based on CNBC)
The Euro slightly underperformed yesterday, as it failed to close above the 136 level. Even though the EUR/JPY pair stretched out towards 136.50, the trading session ended with the single currency stabilising at 135.93. Nonetheless, the rally is expected to continue today, and the 136 psychological level is to be crossed. Moreover, 136.50 should limit any further gains, as it has done so previously. Technical studies retain bullish signals, suggesting that the support around 135.70 is pushing the EUR/JPY cross higher.
Bears keep prevailing over bulls, as only 42% of traders are now long the Euro, compared to 43% yesterday. At the same time, the share of orders to acquire the single currency increased from 59 to 70%.