EUR/JPY approaches 100-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The lack of price pressure in the euro zone just keeps the pressure firmly on the ECB. It is a fairly compelling picture, which shows the path of least resistance continues to be toward a lower euro."
- Canadian Imperial Bank of Commerce (based on Bloomberg)


Pair's Outlook
The Europe's shared currency dropped towards a cluster of support levels (weekly S1; monthly R2; 100-day SMA) around the 138 mark, after approaching the major level at 139 a day earlier. Current decline has changed the technical indicators to less bullish, as of now only the monthly one points to the upside. Moreover, if the support level around the 138 level holds, then a rebound in the short-term might be expected; however, if the pair slides below the level then a sell-off towards the weekly S2 at 137.26 seems likely.

Traders' Sentiment
The difference between the amounts of long and short positions open on EUR/JPY has widened since the previous report, at the moment 53% of the traders are bulls.
© Dukascopy Bank SA

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