© Dukascopy Bank SA
- Rabobank (based on Reuters)
Pair's Outlook
Considering the currency pair's behaviour during the previous month, it looks as if EUR/JPY formed a broadening wedge pattern that usually portends a reversal; in this case—end of the bearish correction. In order to confirm its long-term bullish intentions, however, the price is required to firmly settle above the resistance at 140.15/05, something it has failed to accomplish this week.
Traders' Sentiment
There is nearly perfect equilibrium between the open positions, since 51% of them are long and 49% are short, meaning the sentiment towards EUR/JPY is neutral. In the meantime, the market is building up buy orders near the current trading price, their share jumped from 41% to 58%.
© Dukascopy Bank SA