© Dukascopy Bank SA
- Barclays Plc. (based on Bloomberg)
Pair's Outlook
On Friday the Euro slumped against the Yen slightly more than anticipated, with the expected 123.00 major level failing to limit the dips. The EUR/JPY pair could undergo a correction today, but the weekly PP is now providing immediate resistance at 123.19, while another strong cluster rests circa 123.75, represented by the 20-day SMA and the monthly PP. Meanwhile, daily technical studies shifted from mixed to bearish, also suggesting that the bearish momentum is to prevail. However, the closest support lies out of reach, namely at 121.74, with losses likely to be limited around 122.40.
Traders' Sentiment
Bulls keep growing stronger, as 58% of traders are now long the Euro, compared to 56% previously. The share of sell orders edged higher over the weekend, namely from 37 to 71%.
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