- Commerzbank AG (based on Bloomberg)
The Japanese Yen slightly overperformed on Monday, with risk-off sentiment prevailing on the markets. As a result, the EUR/JPY cross dropped below the 118.00 mark, as well as failed to find support in face of the weekly PP at 117.77. The Euro now appears to be regaining the bullish momentum, ever since it put the 117,00 major level to the test. Technically, a correction is possible, with the target resistance being the monthly S3, located at 118.48. However, technical indicators retain bearish signals, suggesting the given currency pair is to weaken further, in which case the Bollinger band around 118.80 will be the closest support.
Today 56% of traders are long the Euro, compared to 57% yesterday. Meanwhile, the share of purchase orders increased from 47 to 69%.