- Credit Agricole (based on CNBC)
The EUR/JPY cross behaved according to the forecast on Tuesday. Furthermore, the pair sustained losses and found support at 136.31, namely the weekly PP. With a number of resistances in the Euro's path, it would require a decent boost in order to appreciate beyond 137.00. Unless such boost is provided, we should see the single currency fall back to at least 135.75, where the Bollinger band is located. Technical indicators retain their mixed signals in the daily timeframe, unable to confirm or refute the outcome.
Market sentiment remains unchanged, as 53% of all positions are still short. The share of buy commands, on the other hand, added 17 percentage points; they now take up 43% of the market.