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– Royal Bank of Scotland Group Plc (based on Bloomberg)
Pair's Outlook
Having reached the ascending channel's support line, the EUR/JPY cross managed to rebound on Friday, therefore, preserving the ascending channel pattern. Today the pair opened with a small bearish gap, which caused another retest of the channel's lower border. However, due to the weekly PP bolstering the trend-line, the Euro has a solid chance of posting more gains against the Yen today. The 123.00 level is seen as the ceiling, as through all of the previous week the European currency failed to reclaim this level, thus, psychological resistance around this mark remains strong.
Traders' Sentiment
Market sentiment improved over the weekend, being that 60% of traders are now long the Euro, compared to 54% on Friday. The portion of orders to purchase the single currency inched up from 39 to 55%.
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