- Rabobank (based on CNBC)
The Euro dropped against the Yen as low as the 136.00 major level on Monday, amid the Chinese stock market turmoil. However, trade still closed higher at 137.66, still beating the target of 138.00. The single currency is expected to remain relatively unchanged today, as from below it is supported by the weekly S1 and 20-day SMA around 137.40. At the same time, the monthly R1 and weekly PP provide resistance around 138.15. Nevertheless, a slight shift to the upside is most likely, with a chance of retaking the 138.00 major level.
Bulls and bears broke out of the equilibrium, with 51% of traders holding long positions today. However, there are less orders to acquire the Euro today, namely 40% (previously 52%).