EUR/JPY balances on the 55-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Italian bonds and stocks tumbled as the election triggered renewed market concerns over Europe's debt crisis." 
- Bloomberg Pair's 


Outlook 
EUR/JPY plummeted heavily yesterday, as the price slipped from the 20-day SMA at 124.43 and reached the 55-day SMA at 120.49.  Currently the pair notably exceeds the lower Bollinger band, thus correction or consolidation could be expected. On the other hand, the 55-day SMA is a very important level, indicating a potential trend reverse. Therefore a settlement beneath it would mean a high probability of a change in the long-term trend. 

Traders' Sentiment 
Pair's sentiments indicate some confusion among traders, as the pair sharply moves against a long-term trend. Currently there are 57% of long positions and 43% of short. Waiting orders market is rather similar, as 66% of orders are set for a long position and 34% for a short.
© Dukascopy Bank SA

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