- Mizuho Bank (based on Market Watch)
Wednesday ended with the EUR/JPY cross remaining almost completely flat, unable to pierce the monthly S1 to the downside. The given pair lost steam today, dropping back towards the falling wedge's support line during the European session. A recovery from such a sharp decline is unlikely, as there is no impetus present today. Furthermore, aggregate technical indicators in all timeframes keep giving bearish signals, suggesting that the negative outcome is ensured. We, however, expect the trend-line to hold, as it is now also reinforced by the lower Bollinger band.
There are 55% of traders being long the Euro today, compared to 56% yesterday. At the same time, the portion of orders to sell the European currency inched down from 67 to 62%.