- Societe Generale (based on Business Recorder)
The EUR/JPY managed to end the day with a rally, after having tested the monthly S2 and confirmed the down-trend. Gains were limited by the monthly S1, which appears to be providing rather strong resistance, also preventing the given cross from retaking the 129.00 major level. The recent accelerated rally took toll on demand, and resistance at 128.65 is likely to prevent further advancement, as technical studies also suggest. The weekly S3 and the Bollinger band might then limit the dips around 127.80, whereas the weekly S2 at 129.16 should be the ceiling for a possible rally.
For the second day in a row market sentiment remains in perfect equilibrium, while the share of sell orders increased from 55 to 59%.