EUR/JPY endeavours to prolong the recovery

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"It's only a matter of time before we see another exogenous shock that sends the yen higher due to its status as a safe-haven currency." 
- Parry International Trading (based on Reuters) 


Pair's Outlook 
The Euro rebounded from its intraday low yesterday ahead of today's ECB meeting, ultimately remaining relatively unchanged against the Yen, as trade closed with an only five-pip rally. The EUR/JPY currency pair keeps gravitating towards the 124.00 major level, with risks of a sharper decline present. Moreover, technical indicators are giving distinctly bearish signals today, bolstering the possibility of the negative outcome. On the other hand, the cross has been strengthening since the beginning of the weak, meaning that the weekly R2 at 124.50 might also be retaken today, with the second target being the 125.00 level, where the weekly R3 coincides with the 20-day SMA. 

Traders' Sentiment 
For the third consecutive day the share of bulls remains unchanged at 59%. There are now 60% of all pending orders to sell the Euro.
© Dukascopy Bank SA

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