- Credit Agricole (based on Reuters)
The European single currency managed to recover from its intraday low against the Yen yesterday and, as a result, closed on top of the monthly S2. However, risk aversion keeps driving the markets, prompting the EUR/JPY cross to continue sliding down. Moreover, the pair opened with a small bearish gap today, with the closest support now being the cluster around 119.50, represented by the Bollinger band and the weekly S1. The overall bottom target, however, is the monthly S3 at 118.48, which is also reinforced by the weekly S2, opening the door for a slightly sharper drop towards 118.20. Technical indicators, on the other hand, are unable to confirm the bearish scenario.
Now 56% of traders are long the Euro, while the portion of buy orders added 30 percentage points, having risen up to 59%.