- Nordea (based on Reuters)
The Euro strengthened against the Japanese Yen on Wednesday, amid the BoJ leaving its interest rate policy unchanged. The bearish momentum appears to have been prevailing today, but at the moment of writing the EUR/JPY currency pair managed to recover from its intraday low, rebounding from the current ascending channel's support line. The channel's lower border is also reinforced by the weekly and the monthly PPs around 125.60, making it a strong demand cluster. Technical indicators retain bullish signals, but the nearest resistance, namely the Bollinger band and the 55-day SMA around 127.20, is unlikely to be reached.
Bulls retreated again, as 55% of all open positions are long (previously 57%). Meanwhile, the number of buy orders surged from 47 to 59%.