© Dukascopy Bank SA
- Credit Suisse Group AG (based on Bloomberg)
Pair's Outlook
The European single currency weakened against the Japanese Yen on Friday, piercing the 123.00 major level, with trade closing at 122.70. Furthermore, price opened with a small bearish gap today, suggesting that more bearish momentum is to come. The nearest support is represented by the weekly S1 at 122.18, while a much stronger cluster rests around 121.58, represented by the weekly S2 and the Bollinger band. On the other hand, if demand at the weekly S1 is sufficient, the EUR/JPY cross could undergo a correction, but remain under 123.00, as a resistance level there is close by in face of the weekly PP. Technical studies, however, are supporting the bearish scenario.
Traders' Sentiment
Bulls keep growing stronger, as 65% of traders are long the Euro (previously 61%). The share of purchase orders surged from 32 to 55%.
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