EUR/JPY starts the week passively

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The PMI suggests that, having eased in the first quarter of the year, the euro zone's economic downturn is likely to have gathered momentum again in the second quarter."
- Markit (based on Bloomberg)

Pair's Outlook
Although pair is showing bearish intentions it is relatively passive in comparison to the last weeks moves and is fluctuating in the 70 pips range. It is likely that pair will correct its price after a 200 pip move in the end of the last week; traders should pay attention to 128 and 129 JPY. After that, as suggested by technical indicators, we are likely to see further rally. In such case 131 JPY is the main resistance area. 

Traders' Sentiment
Bulls continue to lose the ground in the market further. At the moment they account for 37% of all market participants. Although majority of pending orders are to go long, but as the gauge is at 53% it is rather unlikely bulls with manage to come back swinging.

© Dukascopy Bank SA

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