EUR/JPY challenges 123.29/122.84

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We suspect that the ECB will remain reluctant to trim interest rates for now, but it could buckle if the euro zone continues to falter."
- IHS Global Insight (based on MarketWatch)

Pair's Outlook

Support at 125.05/124.96 was unable to nullify the bearish impetus, but 123.29/122.84 has a higher chance of withstanding the selling pressure and thereby securing the bullish outlook. However, if the price closes below the rising trend-line, then we are likely to see a quick decline towards 121.10/120.92, while a subsequent level is at 119.70/118.94.

Traders' Sentiment
While traders' sentiment was neutral yesterday, it has become slightly more bullish today, since the share of long positions has grown up to 56%. Additionally, the portion of pending buy orders has increased up to 74% from 68% recorded during the writing of the previous report.
© Dukascopy Bank SA

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