- Barclays (based on CNBC)
The EUR/JPY cross brought no surprises on Tuesday, as a decline towards the lower Bollinger band took place. Nonetheless, volatility almost managed to reach the support cluster around 134.40, but the pair refused to stay under the 135.00 major level for too long. As a result, the Euro is expected to rebound today and erase some of yesterday's losses. However, technical indicators are now giving bearish signals, suggesting the single currency is to weaken again, despite the strong cluster supporting the pair now around 134.55.
Market sentiment shifted to the bullish side, as 58% of traders hold long positions today. The number of sell orders, however, keeps dominating the market, taking up 81% of it.