- Bank of Tokyo-Mitsubishi (based on WBP Online)
Despite having reached the immediate support in face of the weekly S1, the EUR/JPY currency pair managed to rebound yesterday. There is little room for another rally, as the weekly and monthly PPs, along with the 20 and 200-day SMAs, form a rather strong resistance around 134.80. However, the given cross could still climb higher towards this resistance cluster, despite technical indicators retaining their bearish signals. A drop is also possible, but should be limited by 133.60, while a surge remains the base case scenario.
Market sentiment remains bearish, with bears (66%) outnumbering the bulls (34%). Meanwhile, the number of sell orders increased, taking up 67% of the market, compared to 59% yesterday.