© Dukascopy Bank SA
- Morgan Stanley (based on CNBC)
Pair's Outlook
Although we were expecting the currency pair to respect the support at 138.51/43 and recoil back to the upper boundary of the bearish channel, EUR/JPY breached this demand area. Accordingly, the Euro is now likely to advance towards 136.72/49, where the weekly S1 level merges with the 61.8% Fibonacci retracement of the November-December up-move.
Traders' Sentiment
Apparently, precipitous depreciation of the Euro discouraged some of the bullish investors, being that the portion of long positions fell from 71% down to 68%. Meanwhile, there has been a substantial drop in the share of buy orders—from 75% to 50%, meaning there is no strong support near the spot price.
© Dukascopy Bank SA