"Geopolitical tensions are what is driving the markets at the moment, which started after the US attacked Syria after the chemical gas attack last week."
- AvaTrade
Pair's Outlook
Contrary to expectations, EUR/JPY managed to breach the bottom trend-line of the longer-term broadening wedge as well as the monthly S2 at 115.81. This has left the pair moving towards the weekly S3 and the lower Bollinger band. Nevertheless, traders remain bullish on the pair, expecting appreciation. It seems that this might be the case, with technical oscillators signaling a shift upwards for some time now. However, political uncertainty is still an important influencer, especially at this time when tensions over North Korea are escalating quickly. This may increase risk-averse demand for a safe-haven currency.
Traders' Sentiment
Market sentiment remains bullish, as 68% of traders are holding long positions. In addition, 67% of pending orders are to buy the Euro.
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