© Dukascopy Bank SA
- UBS (based on Bloomberg)
Pair's Outlook
There is a high chance the ‘sell' signals given by the technical indicators on Friday are going to prove to be correct. After today's most active trading hours EUR/JPY has fallen not only through the monthly pivot point, but also through the 55 and 100-day SMAs, leaving the weekly PP and 20-day SMA at 135.60/55 exposed. If this support is violated as well, the next target will be a dense demand area around 134.30, where the 200-day SMA merges with the monthly S1.
Traders' Sentiment
Bearish sentiment intensified against the Euro. The share of short positions went up to 57%. At the same time the percentage of buy orders surged from 39 to 61%.
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