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- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
Due to an unexpected monetary policy decision made by the BoJ, the EUR/JPY cross soared towards the 100-day SMA, but stabilised only at 131.18. The consequences of the BoJ going into negative territory are still in effect, causing the Yen to decline against other currencies. As a result, we could see the given pair retest the 100-day SMA at 132.31, and, eventually, the down-trend below 133.00. The bullish trend also remains intact, but weekly and monthly technical studies suggest the immediate support cluster around 130.50 could soon be broken.
Traders' Sentiment
Bulls and bears broke out of the equilibrium, with long positions now outnumbering the short ones by only two percentage points.
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