EUR/JPY poised for more weakness

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"There's a lot of nervousness. Post-Brexit issues are starting to sink in. The yen has been a big story. It keeps strengthening as a safe-haven currency." 
- U.S. Bank (based on Reuters) 


Pair's Outlook 
The European single currency managed to recover from its intraday low on Wednesday, ultimately remaining relatively unchanged against the Japanese Yen, closing with only a 25-pip loss. Although the weekly S1 was successful at keeping the pair above the 112.00 level, there are concerns whether today demand at that area will be sufficient to limit the losses if those occur. The Bollinger band and the weekly S2 still form another support cluster around 110.20, but technical studies remain mixed, unable to confirm the bearish scenario. Consequently, we should not rule out the probability of the Euro outperforming the Yen by day's end. 

Traders' Sentiment 
Market sentiment improved over the day, as 61% of all open positions are now long. The portion of buy orders surged from 58 to 81%.
© Dukascopy Bank SA

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