- Morgan Stanley (based on Reuters)
The bullish scenario prevailed yesterday, as the EUR/JPY rebounded from the weekly S1 and climbed over the weekly PP, gaining a total of 59 pips. However, despite this recovery, the given cross is still likely to remain within the consolidation range, namely between 131.50 and 133.00. The 133.00 major level is now bolstered not only by the weekly R1, but also by the 20-day SMA, while the lower boundary is reinforced by the weekly S1. Technical indicators are also suggesting the Euro is to slide down, but not beyond 132.00.
There are now 56% of traders with a positive outlook towards the Euro, compared to 53% yesterday. The portion of sell orders increased again, now taking up 65% of the market (previously 57%).