EUR/JPY extends decline, tests 135.00

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The ECB is really getting mixed messages -- growth is holding up quite well, the recovery story looks to be on track. However, we've had an increase in market turmoil, which has led to some tightening in financial conditions, and we've seen the slump in commodity prices that have caused a decline in inflation expectations."
- ABN Amro Bank NV (based on Bloomberg) 


Pair's Outlook 
The Euro remained relatively unchanged against the Japanese Yen yesterday, declining only five pips. With the new month the monthly pivot point shifted higher, leaving the EUR/JPY unsupported around 135.70. As a result, the given cross is expected to sustain losses today and fall to the immediate support, namely the Bollinger band around 135.12. A much stronger cluster rests around 134.40, represented by the weekly and monthly S1s and the 200-day SMA, which if broken should trigger another decline towards the July low at 133.29. 

Traders' Sentiment 
Bull and bears broke out of the equilibrium, with 51% of all positions now short. The share of buy orders increased from 28 to 37%.
© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.