- Capital Economics (based on WBP Online)
Nothing out of the ordinary happened to the EUR/JPY cross yesterday. The pair appreciated, piercing the immediate resistance, but failed to edge above the 135.60 mark, as that area kept the Euro from rising through all of the week. Nevertheless, the cluster around 135.15 is supporting the single currency, stimulating it to having reached a fresh three-week high; however, the pair might struggle to maintain trade above 136.00. The 55-day SMA and the weekly R2 are blocking the path, while the volatility is being limited by the second resistance, namely the 100-day SMA.
Bulls are barely outnumbering the bears, as 51% of all positions are long, whereas purchase orders now account for 67% of the market.