- FxPro (based on Market Watch)
On Friday, the European currency reached a fresh weekly high, but met resistance around 137.00. However, today the EUR/JPY cross opened slightly lower and was unable to maintain trade above the 137.00 resistance cluster. As a result, the Euro might bounce back and fall down to the weekly PP at 135.64; on the other hand, if it preserves the strength, trade is then likely to close around 136.70, where the 20-day SMA rests. Meanwhile, technical indicators, although not as strong as before, are still giving bearish signals.
Bearish market sentiment returned to its Wednesday's level of 52%, compared to 53% previously. The number of purchase orders, on the other hand, increased from 45 to 76%.