"The question remains whether the higher service price inflation reflects a rise in underlying price pressure, which would change the ECB's monetary policy stance."
— Bomholdt Henneberg, Danske Bank (based on FX Street)
Pair's Outlook
Reinforced by solid fundamentals, EUR/JPY managed to overcome the upper wedge boundary that was regarded as a possible turning point on Tuesday. The Euro was appreciating steadily against the Yen during the first hours of this trading session and is currently approaching the March high at 122.60. This particular level is located slightly below the weekly R1 and the upper Bollinger band, leading to believe that it may be strong enough to stall the price for today. Technical indicators demonstrate mixed signals, as oscillators are still remaining in the overbought region, while the MACD, DMI and Alligator are bullish.
Traders' Sentiment
The market sentiment has slightly diminished today, as 52% of open positions are long. Likewise, 52% of pending orders are to buy the Euro.
© Dukascopy Bank SA