- CMC Markets (based on WBP Online)
The European currency completely negated the two-week gains, as it reached a six-week low yesterday. The support cluster managed to stop the losses and pushed the EUR/JPY cross slightly back up, where it closed at 133.83. Although technical studies retain their bearish signals, we believe a rebound is likely to take place, as the pair approached a solid support cluster around 133.00. The Euro has already reached a daily high above 135.00, but it should settled just above the 134.00 major level, around 133.30.
Bulls retreated again, as only 47% of traders hold long positions today. At the same time, the number of commands to acquire the single currency declined as well, from 43 to 21%.