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- Danske Bank (based on FXStreet)
Pair's Outlook
Yesterday the Euro once again failed to climb over the 123.00 major level, resulting in a mild bearish development of 75 pips. The closest support was unable to limit the losses, but the second level, namely the weekly S1, managed to limit the volatility, allowing the EUR/JPY cross to retain its position above the 122.00 mark. Even though technical indicators keep suggesting a rally is due, there is still room for a decline towards the psychological level of 121.50. A positive outcome, however, is more probable, with the 123.00 level still acting as the ceiling.
Traders' Sentiment
Although slightly weaker than yesterday, but market sentiment remains bullish at 56% (previously 58%). At the same time, the share of orders to purchase the European single currency inched up from 49 to 52%.
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