© Dukascopy Bank SA
- BMO (based on CNBC)
Pair's Outlook
The European currency remained under pressure due to dovish comments from the ECB officials. As a result, the EUR/JPY cross pierced the immediate support, but stabilised in front of the second one, namely the weekly S2. Today the given pair is like to rebound, as the poor Chinese Manufacturing PMI weighed on the Yen, causing a surge above the 134.00 major level. However, yesterday's immediate support is now providing rather strong resistance and is likely to limit the gains around 134.40.
Traders' Sentiment
Bears remain in the majority, as 55% of traders hold short positions (previously 52%). Meanwhile, the percentages of buy and sell orders did not change, accounting for 42% and 58%, respectively.
© Dukascopy Bank SA