- Kathy Lien, BK Asset Management (based on CNBC)
Yet again the Euro advanced against the Japanese Yen. The EUR/JPY cross reached as high the 136 psychological level, which caused the pair to inch down and close trade at 135.70. Nevertheless, we expect the single currency to gain those 30 extra pips today, despite mixed technical indicators. Strong fundamental data should be sufficient to push the Euro higher, but not enough to penetrate the resistance barrier around 136, bolstered by the weekly R1.
For the third day in a row market sentiment remains unchanged, as 52% of traders still hold long positions. Surprisingly, the number of orders to acquire the Euro also remains unchanged, with 48% of them to acquire the European currency.