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- ABN Amro Bank (based on Bloomberg)
Pair's Outlook
On Thursday the Euro edged slightly higher against the Japanese Yen than expected, with trade closing at 116.40, rather than below 116.25. The supply area around 116.60 limited the volatility and appears to have triggered Euro-selling, as the exchange rate dropped significantly during the Asian session. As a result, the EUR/JPY cross risks falling back under 116.00, but the cluster circa 115.80, formed by the weekly R1 and the 50% Fibo could still limit the losses. Technical studies are unable to confirm the outlook, and taking into account latest volatility, even an eventual intraday surge would not be a surprise.
Traders' Sentiment
There are 62% of all open positions being long today, compared to 61% on Thursday. At the same time, exactly three quarters (75%) of all pending orders are to acquire the European currency (up from 46%).
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