- Mitsubishi UFJ Kokusai Asset Management Co. (based on Bloomberg)
For the third consecutive day the Euro managed to outperform the Japanese Yen yesterday, but still unable to put the immediate resistance level to the test. The Euro is expected to undergo another rally, this time reaching the closest resistance at 115.11, namely the weekly PP. However, we should not rule out the possibility of the EUR/JPY pair sustaining more losses, since technical indicators in the daily timeframe are giving bearish signals. In this case, the closest support will be the Bollinger band at 112.21, but a drop that low is unlikely to take place by the end of the US session today.
Today 63% of all open positions are long, unchanged since Wednesday. At the same time, the portion of orders to purchase the European single currency inched down from 67 to 57%.