EUR/JPY bounces from monthly R2

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Given the deteriorating fundamentals in the euro zone, the prospect of (an ECB rate cut) has certainly increased. A rate cut would be the quickest and least expensive policy course."
- BK Asset Management (based on CNBC) 

Pair's Outlook
Monthly 2 at 128.44 passed the test yesterday and sent the pair back above 129 JPY. However, todays events shows that pair still has the propensity to move closer to the 20-day SMA while the mentioned monthly pivot provides enough support to keep it at the current levels for the time being. It seems rather evident that pair has formed a Double Top pattern and should continue falling until the pattern's support around 125.5, where it might pick up.

Traders' Sentiment
The sentiment of SWFX marketplace participants fluctuates around perfect neutrality. The share of bullish towards EUR/JPY currency pair traders decreased marginally, from 49% to 47%. However, on average the single European currency is one of the most popular currencies, being bought in 50% of transactions involving its crosses.

© Dukascopy Bank SA

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