- Commerzbank (based on FXStreet)
Although the Euro edged closer to the 125.00 major level, the EUR/JPY cross was unable to maintain trade that low, as demand at 126.66, namely the monthly PP, proved to be too strong to pierce. The pair is now close to the current ascending channel's support line, leaving little room for a possible decline. Furthermore, the monthly PP remains the immediate support and is likely to cause a rebound, with a possibility of yesterday's losses getting erased. Technical indicators support this scenario by giving bullish signals in the daily timeframe. The longer period ones, however, suggest the channel is to be breached to the downside this week.
Market sentiment slightly improved over the day, as 57% of all open positions are currently long, compared to 56% on Tuesday.