- Mizuho Securities (based on Reuters)
The EUR/JPY currency pair remained relatively unchanged on Thursday, but with the bearish momentum still prevailing with a 27-pip decline. The immediate support remains strong, represented by the channel's support line, the weekly and the monthly PPs around 126.70. Furthermore, the cross struggled to breach this support area through all of the week. Technical studies, on the other hand, remain bullish, but the bullish outcome is still doubtful, even though there is room for a rally up to 127.00. The base case scenario is a close in front of the monthly PP, which rests at 125.66.
Market sentiment remains unchanged, as 55% of all open positions are still long. At the same time, the number of buy orders added four percentage points, they now take up 63% of the market.