EUR/JPY breaches 20-day SMA at 136.86

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The euro is going to slowly lose ground. U.S. monetary policy is slowly normalizing whilst the ECB are moving in the opposite direction. It is difficult to be constructive about the euro's immediate prospects."
- Commerzbank AG (based on Bloomberg)


Pair's Outlook
The Europe's common currency breached the weekly PP and 20-day SMA at 136.86/137.04 today. At the moment of writing the pair is trading above the major level at 137; nevertheless, to our mind the key resistance level is slightly higher at 137.37. It is a down-trend resistance, this trend formed on March and the pair has not closed above the upper boundary ever since. Therefore, in case EUR/JPY breaks this level and confirms it with a close we might see a jump towards the monthly PP at 137.75.

Traders' Sentiment
Even though we are seeing a more or less substantial movement the sentiment towards the pair has changed just slightly. As of today 54% of the market participants are bearish.
© Dukascopy Bank SA

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