- Mizuho Bank (based on Market Watch)
As was expected, the EUR/JPY cross partially recovered from its intraday low yesterday, therefore, closed above the falling wedge's support line. Technical studies are now giving mixed signals, opposed to bearish ones on Thursday, creating a possibility of the pair ending trade in the green zone today. On the other hand, risk aversion keeps driving the markets, thus, the Japanese Yen is still likely to outperform the European currency. The wedge's lower border and the Bollinger band remain the closest support, which should prevent the exchange rate from falling deeper.
Today 55% of traders retain a positive outlook towards the EUR/JPY, unchanged since yesterday. The same percentage as all open positions, is also equal to the percentage of buy orders.