- Nomura (based on CNBC)
The European currency edged higher against the Japanese Yen on Monday, with the immediate resistance in face of the weekly PP limiting the volatility. The EUR/JPY is likely to extend its previous week's consolidation trend, trading between 127.50 and 128.65. Even though the weekly PP is providing immediate resistance at 127.91, we should see the cross bounce back only upon retesting or inching closer to the monthly S1 at 128.65, which in turn is bolstered by the weekly R1. Meanwhile, technical studies retain distinctly bearish signs, implying a decline towards 127.00 area Is possible.
Bulls and bears swapped places, as 51% of traders are now short the Euro. The number of purchase orders added 5% points, up to 37%.