- BAML (based on CNBC)
The Euro remained relatively unchanged against the Japanese currency on Tuesday, failing to fall back towards the 122.00 major level. Technical indicators keep giving mixed signals in the daily timeframe, but remain bearish in the longer timeframes, thus, the overall outlook also remains bearish. The EUR/JPY cross could take another shot at slumping under the 122.00 psychological level, but with the nearest support still being out of reach around 121.25, represented by the Bollinger band. However, the pair is also eventually expected to reconfirm the 18-month down-trend, therefore, there is room for a bullish development towards the immediate resistance around 123.60.
Today 68% of all open positions are long (previously 72%), while the number of purchase orders inched up from 49 to 53%.