- HSBC (based on Reuters)
The EUR/JPY currency pair dropped below the 135.00 mark, with the 200-day SMA preventing the cross from falling deeper on Wednesday. The given SMA is also bolstered by the monthly and weekly PPs, which altogether are forming a rather strong support cluster and should cause the Euro to rebound on Thursday. The 20-day SMA and the weekly R1 are now forming a resistance around 135.15, but might fail to prevent further gains, as this cluster failed to hold the single currencies from moving all week.
Bulls regained their numbers, as 60% of all positions are now long (previously 48%). At the same time, the portion of orders to buy the single currency added two percentage points, rising up to 34%.