- BBH (based on FXStreet)
The EUR/JPY pair's losses exceeded expectations last week, as the target support cluster failed to hold the cross afloat. The given pair has been trading closer to a resistance line for more than a month; therefore, sharper declines were bound to occur rather sooner than later. The beginning of a new year is expected to be accompanied by such ‘underperformance', while today's fall is likely to be limited by the closest support around 130.00 major level, namely the Bollinger band and the weekly S1. Meanwhile, the weekly PP at 131.15 is providing resistance, whereas technical studies remain bearish.
Market sentiment reached a perfect equilibrium today. The number of orders to acquire the Euro increased from 38 to 52%.