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- Citigroup (based on CNBC)
Pair's Outlook
The EUR/JPY currency pair managed to edge higher on Monday, but unable to breach the immediate resistance area, as demand at 124.04, namely the monthly S1, was sufficient contain the volatility. However, the 123.00 psychological level appears to be providing strong support and preventing the given cross from sustaining sharper losses. According to technical indicators, the pair is to edge lower today, with the mentioned major level acting as the immediate support, whereas the Bollinger band around 122.55 is a more solid demand area. On the other hand, there is still room for 45-pip rally towards the monthly S1 if bulls take over the market and push the Euro higher again.
Traders' Sentiment
Bulls are outnumbering the bears by only 2% points, whereas the portion of sell orders declined from 65 to 58%.
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