© Dukascopy Bank SA
- Morgan Stanley (based on Bloomberg)
Pair's Outlook
Today the pair tested the major level at 139; however, it failed to consolidate above this level. Nonetheless, we expect the 18-nation currency to attack this level once again. The short term technicals are largely bearish, that could encourage pair's bears; therefore, it might slip towards the monthly S2 and weekly S1 at 138.38/30. We think that the pair should be trading above the 200-day SMA at 139.35 as in our opinion Yen's strength is overrated.
Traders' Sentiment
The sentiment towards the EUR/JPY fell to 51% from yesterday's 56%. Concerning the orders placed 100 pips from the spot, there are now less commands to buy— 56% compared to Wednesday's 66%.
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