- Rabobank (based on CNBC)
On BoJ Kuroda's remarks the EUR/JPY dropped to the 123.00 major level on Tuesday, but managed to stabilise at 123.50. Today the risk-off sentiment returned to the markets, strengthening the safe-haven Yen again. As a result, the given cross is likely weaken, while trade could close at the 123.00 level if the weekly S2 and the Bollinger band provide sufficient support. In case demand fails to hold the losses, the exchange rate could even fall beyond the 122.50 mark. Meanwhile, technical studies in all timeframes retain their bearish signals, suggesting the seventh consecutive decline is foregone.
Today 56% of all open positions are long (previously 58%), while the number of purchase orders declined from 57 to 29%.