- Nomura (based on Reuters)
The bearish momentum appears to be prevailing today, pushing the EUR/JPY cross lower. The nearest support is represented by the monthly PP at 125.66, but the second cluster around 124.90 has a much stronger demand area, as it was tested earlier today and caused the Euro to negate some of its intraday losses. Meanwhile, the weekly PP is the only level that is preventing the pair from edging higher and, thus, preserving the ascending channel pattern. Technical studies insist that the bulls might still push the Euro higher, as indicators remain bullish.
Market sentiment remains unchanged, with bulls still taking up 54% of the market. At the same time, all pending orders are equally divided between the buy and the sell ones.