- Commerzbank AG (based on Bloomberg)
The Yen weakened on Friday, allowing the Euro to take the upper hand and remain above the 117.00 major level. Furthermore, the EUR/JPY currency pair opened with a bullish gap above the 118.50 mark today, but that does not mean the recovery is to last. Technical indicators are now giving bearish signals, suggesting that the bearish momentum is likely to return. However, the monthly S3 support at 118.48 could be sufficient to prevent the cross from sustaining sharp losses; if not, the weekly PP should keep the Euro elevated above 118.00 yen. Moreover, there is no impetus present today, that could prompt the European single currency to move significantly lower.
For the fourth consecutive time 57% of all open positions are long, but the number of buy orders declined from 87 to 47%.