- JPMorgan Chase Bank (based on CNBC)
The EUR/JPY cross behaved according to the forecast, as it dropped down yesterday. The pair plunged to the weekly S1, with volatility even reaching the 134 psychological level. Technical studies keep showing bullish signs, suggesting a rebound, but the Euro lies just under the weekly S1 and 20-day SMA, which provide significant resistance. As a result, we expect more weakness, but not further than the 134 area; however, the currency pair remains flat in the middle of the day, struggling to shift in either direction.
Bears are barely winning against the bulls, as 48% of traders are now long the European currency compared to 45% yesterday. The share of orders to buy the Euro slightly rebounded, from 26 to 38%.