- Barclays Plc. (based on Bloomberg)
Upon reaching the nearest resistance around 124.60, the EUR/JPY cross lost momentum and retreated from its intraday highs, ultimately closing with a 14-pip rally. The pair remains supported by a tough cluster, represented by the monthly PP, the weekly R1 and the 20-day SMA, which technically should prevent the Euro from edging lower. However, medium and long-term indicators are giving bearish signals, suggesting that a breach of the nearest support is possible. In this case, the 123.00 major level should limit the dips. On the other hand, the bullish bias is struggling to prevail, as the pair was unable to climb over the 124.60 resistance since the beginning of the week.
Today 56% of traders are long the Euro (previously 57%), while the share of purchase orders increased from 45 to 63%.