- Mizuho Bank Ltd. (based on Bloomberg)
The EUR/JPY cross retreated again on Wednesday, but with trade once again closing near the monthly PP. The pair is now likely to appreciate again, as price appears to be caged around the weekly and the monthly pivot points. Moreover, the given pair is supported by the ascending channel's lower border just below today's opening price. Meanwhile, technical indicators are also in favour of the bullish scenario. The second resistance target is located only around the 126.90 level, represented by the weekly R1 and the 55-day SMA, but a rally that high is doubtful, as no impetus is present today.
Traders' sentiment remains somewhat bullish, as 53% of all open positions are still long. There are significantly more orders to acquire the Euro today, namely 74%, compared to 68% on Wednesday.