- Francesco Papadia, Bruegel Institute (based on CNBC)
Although the EUR/JPY failed to appreciate on Monday, the descending channel pattern was not broken. The up-trend and the monthly S1 managed to hold the losses, leaving the given cross relatively unchanged and with hopes of another possible rebound today. The Bollinger band and the weekly S1 are now also contributing to this support cluster; however, despite such strong demand, a risk of another decline or flat trade persists, as technical studies retain bearish signals. Meanwhile, the weekly PP keeps providing resistance at 131.21.
Market sentiment remains bullish at 71%, but not as strong as yesterday. The share of buy orders is unchanged, namely at 44%.