- CIBC World Markets (based on CNBC)
Although the European currency tested the 137.69 level yesterday, attempts to break out of the ascending channel pattern were in vain. The Euro, however, did slide down, but failed to erase Wednesday's gains completely. The EUR/JPY cross is expected to remain relatively unchanged over the day, with a possible slight decline towards the weekly S1. Risks of breaking out of the pattern exist as well, but trend-line should provide sufficient support for the given pair not to fall deeper than the weekly S1. Meanwhile, technical indicators are now giving mixed signals, unable to confirm or refute the scenario.
Today 49% of traders hold long positions (previously 47%). The share of orders to acquire the Euro declined from 64 to 56%.