EUR/JPY responds negatively to fundamental pressures

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 44% 35% 20.45%
Shorts 56% 65% -16.07%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Buy Buy Buy
SAR (0.02; 0.2) Buy Buy Buy
Aggregate

The Euro was driven by strong upside momentum on Wednesday in the result of which the rate shot up to the 133.60 mark—a level past the weekly R1, the 23.8% Fibo and the upper wedge boundary. Thus, the upper line of this pattern was shifted to the upside. 

The bullish market sentiment changed swiftly at 0700GMT in the wake of further escalation of the Catalonia/Spain conflict. This pressure dominated the market for two hours; the rate nevertheless managed to recover from the 132.60 area and remain slightly below the weekly R1. 

The Euro might be largely influenced by fundamental developments that are likely to push the rate lower during the next 24 hours.

The bottom target is a support cluster formed by the 200-and 55-hour SMAs, the weekly PP and the 38.2% Fibo circa 132.60.

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