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- Barclays (based on Reuters)
Pair's Outlook
On Monday the European currency retreated from intraday highs and closed trade just above the 132.00 psychological level, as was anticipated. The EUR/JPY kept hovering above the weekly PP at 132.03, on top of which price opened today. At the same time, upside volatility is being limited by the monthly R1 at 132.30, while gains are likely to be capped near this area as well. In case the weekly PP fails to provide sufficient support for the pair to withstand the bearish pressure, the weekly S1 is likely to take over and keep the Euro away from a sharper decline.
Traders' Sentiment
Traders are equally divided between bulls and bears today, whereas the number of sell orders increased dramatically, up to 85%.
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