- Masashi Murata, BBH (based on CNBC)
The European currency declined for the fourth consecutive day yesterday, but stabilised above the 135.00 target level at 135.14. Nonetheless, there is still room for more depreciation, which should take place today. Immediate support retains its position around the 134.00 major level, whereas technical indicators are giving bearish signals in the daily timeframe. However, the EUR/JPY pair will doubtfully stretch out too far under 135.00; thus, the cross is likely to close trade at the mentioned major level.
Bulls and bears broke out of the equilibrium, as only 45% of traders are now long the Euro. At the same time, buy orders keep rising, as 49% are now acquire the single currency, compared to 48% before.