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— Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. (based on Bloomberg)
Pair's Outlook
The European single currency weakened against the Japanese Yen on Friday, experienced relatively sharp losses. Nonetheless, the given cross managed to remain above the 121.00 psychological level. From below the pair is now supported by the 20 and the 100-day SMAs, suggesting that a drop below 121.00 is doubtful. However, strong gains are also out of the questions, with the 55-day SMA acting as the nearest resistance around 121.22. Meanwhile, technical indicators keep giving bullish signals in the daily timeframe, bolstering the possibility of the positive outcome. In case the 55-day SMA gives in—the next target will be the weekly PP and the monthly R1 cluster around 121.60.
Traders' Sentiment
Traders' sentiment remains in perfect equilibrium, but the share of purchase orders inched up from 57 to 60%.
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