- Bank of New Zealand (based on Business Recorder)
The third resistance cluster was unable to hold the EUR/JPY cross from rising further, which resulted in the pair appreciating above the 134.00 major level and meeting resistance only at 134.55, with trade closing on top of the 200-day SMA at 134.10. After such a huge rally the Euro could undergo a correction and erase some of those gains. The Bollinger band and the 55-day SMA form a support around 133.50, which should limit the losses. Nevertheless, the given pair still has the potential to reach the one-year down-trend if the monthly R1 and 100-day SMA fail at holding gains around 134.60.
Bulls and bears broke out of the equilibrium, with 67% of traders being long the Euro. The share of buy orders slid from 78 to 41%.