- Capital Economics (based on Reuters)
The European currency declined against the Japanese Yen on Friday, piercing the weekly S1 and finding support only near the trend-line and the levels bolstering it. As a result, the descending channel was confirmed, the lower boundary of which should contribute to the EUR/JPY's rebound today. The immediate resistance is represented by the Bollinger band around 130.87, but gains could well exceed this level and meet resistance only in face of the weekly PP at 131.21. Technical indicators, however, retain their bearish signals.
Bulls took over the market, as nearly three quarters (74%) of all positions are long. Although there are less sell orders today, they still take up the majority of the market, namely 56% of it.