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- Eisuke Sakakibara, Japan's former top currency official (based on Bloomberg)
Pair's Outlook
The EUR/JPY currency pair managed to stabilise above the main support area yesterday, with trade closing with a 68-pip loss yesterday. However, the cross appears to have regained the bullish momentum earlier than anticipated, having made a solid U-turn and established a new 15-week high at 116.60, where the weekly R2 and the monthly R1 are located. Technical studies suggest the Euro is to outperform the Yen today, but 116.00 major level is likely to be barely overtaken. The most probable outcome is a close below 116.25, namely below the upper Bollinger band, but with the immediate resistance circa 115.75 being ignored.
Traders' Sentiment
Bullish traders' sentiment returned to its Tuesday's level of 61% (previously 59%), while the share of sell orders grew from 41 to 54%.
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