EUR/JPY strongly above Ichimoku cloud

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The stabilization of the job market contrasts markedly with the steep rate of job losses this time last year, highlighting the extent to which business confidence has been revived."
- Markit (based on The New York Times)

Pair's Outlook

Despite the continuous attempts to push the pair lower, bulls managed to keep it afloat above the Ichmoku cloud. However, recent changes in market sentiment gives a reason to expect a major attack by the bears. It could send the pair as low as February/March low around 139 JPY. In case of an unexpected bullish action, we could see it peaking till monthly R1/weekly R2, but further appreciation seems very unlikely.

Traders' Sentiment

It seems that bulls reached the peak of their strength a few days ago as bullish side of open positions is deteriorating further. It slipped by 2% since yesterday and is at 44% gauge today. Besides that, long side of pending orders contracted by at least 7%, till 62-69% level.

© Dukascopy Bank SA

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