© Dukascopy Bank SA
- BBH (based on Reuters)
Pair's Outlook
The EUR/JPY currency pair behaved in accordance with expectations on Friday, as the exchange rate edged higher, erasing all weekly losses, but unable to climb over the monthly PP. The cross is now subject to weakness, as demand for safe-haven assets keeps boosting the Japanese currency. Furthermore, the G7 meeting on Saturday sparked more Yen-buying, as Japanese authorities are against the BoJ intervention. The question is now whether price will fall below the weekly S1, which is located at 122.78. Technical studies are still giving mixed signals, indicating that a close above that area is more probable, unless the risk-off sentiment drastically prevails.
Traders' Sentiment
Now 65% of traders hold long positions, compared to 64% on Friday, whereas the percentage of buy orders increased from 57 to 74%.
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