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- Todd Elmer, currency strategist (based on Bloomberg)
Pair's Outlook
Even though the EUR/JPY's bullish momentum faded last Friday, the pair was still unable to close under the immediate support, thus, remained relatively unchanged. Today immediate resistance is formed by the 55-day SMA and the weekly PP just ten pips above the opening price. This cluster is to prevent the European currency from edging higher; whereas another cluster at 132.30, namely the weekly S1 and monthly R1, is to limit the losses. Meanwhile, technical studies are giving mixed signals, suggesting the pair might remain unchanged for an extra day and prolong trade above 133.00.
Traders' Sentiment
The equilibrium was broken, with bulls taking up 65% of the market. There are now also 62% of orders to buy the Euro (up from 41%).
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