- ANZ Bank New Zealand (based on The New Zealand Herald)
The Euro extended its gains against the Japanese Yen for the third day in a row this week. The rally did not just end with the EUR/JPY pair reaching the 139, but also the 140 psychological level, as neither resistance could hold the cross from climbing. Although technical studies retain their mixed signals, we still expect the European currency to appreciate against the Yen. Immediate resistance now lies at 140.72, which should prevent the pair from inching beyond 141.
Bulls retreated again, as 56% of traders now hold long positions, compared to 58% yesterday. The number of purchase orders also declined, from 60 to 56%.