- BNP Paribas (based on CNBC)
The EUR/JPY currency pair was unable to breach the immediate support, namely the weekly PP, and, as a result, barely returned under the 125.00 level. The cross still faces a resistance around 125.50, represented by the 20-day SMA and the monthly PP, but the bearish momentum is likely to prevail. The weekly PP could limit the losses, while a sharper decline even beyond the 124.00 major level is also possible. Technical studies also retain their bearish signals, bolstering the possibility of the negative outcome; however, the signals in the daily timeframe are not as strong as before.
Bears keep gaining numbers, as 56% of traders are now short the Euro, compared to 52% yesterday. The percentage of sell orders in the 100-pip range from the spot, on the other hand, declined from 62 to 56%.