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- RBC Capital Markets (based on Reuters)
Pair's Outlook
The Euro pushed further, successfully climbing over the 123.00 yen level on Friday, but still unable to touch the resistance line at 123.50. However, ahead of the BoJ meeting, which is scheduled for Tuesday, the Japanese Yen strengthened dramatically due to the return of risk-off sentiment. The EUR/JPY cross now risks closing trade below the 122.00 mark, unless the second demand cluster around that area manages to limit the losses. The given pair could now fall back towards 121.00, where the exchange rate is expected to rebound again and make its way back towards 123.50.
Traders' Sentiment
Market sentiment barely changed over the weekend, being that 60% of all open positions are long today (previously 59%). As for the pending orders, nearly three quarters (74%) of them are to sell the Euro.
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