- BBH (based on CNBC)
The European currency reached a daily low of 131.50, but ended the day just at the September low. From this point on the EUR/JPY cross is expected to rebound, but is unlikely to leave its consolidation range just yet. Immediate resistance is represented by the weekly PP at 132.30, but gains should be limited by the second area around the 133.00 mark. This major level is now also somewhat bolstered by the weekly R1, while a breach of the Sep low remains possible, as technical studies retain bearish signals. Nevertheless, if not the Sep low, then the weekly S1 should hold the dips.
The majority of traders (53%) are holding long positions. The share of buy orders also accounts for the largest part of the market (52%).