- Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Friday's decline was unable to lead the EUR/JPY cross below the 121.00 major level, which is now providing psychological support. The pair has been declining through most of the previous week and is now expected to undergo a bullish correction. The nearest resistance is formed by the Bollinger band and the monthly S1, located around 121.45, while the second resistance lies on top of the 122.00 mark, represented by the weekly PP. Technical indicators are also giving bullish signals in the daily timeframe, bolstering the possibility of the positive outcome. The base case scenario is a close above 121.40, namely Friday's opening price.
Traders' sentiment slightly improved, with 58% of all open positions now being long (previously 54%). Meanwhile, there are 52% of all pending orders to purchase the Euro, compared to 47% previously.