EUR/JPY stable above 118.00

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We are seeing a reversal in the risk-off environment That means that the safe havens are weakening. The euro meanwhile is strengthening as it has been suffering from the prospect of a Brexit, and because of its strong linkage to the U.K. it was put in the same box as the pound." 
- Commerzbank AG (based on Bloomberg)


Pair's Outlook 
The Yen weakened on Friday, allowing the Euro to take the upper hand and remain above the 117.00 major level. Furthermore, the EUR/JPY currency pair opened with a bullish gap above the 118.50 mark today, but that does not mean the recovery is to last. Technical indicators are now giving bearish signals, suggesting that the bearish momentum is likely to return. However, the monthly S3 support at 118.48 could be sufficient to prevent the cross from sustaining sharp losses; if not, the weekly PP should keep the Euro elevated above 118.00 yen. Moreover, there is no impetus present today, that could prompt the European single currency to move significantly lower. 

Traders' Sentiment 
For the fourth consecutive time 57% of all open positions are long, but the number of buy orders declined from 87 to 47%.
© Dukascopy Bank SA

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