EUR/JPY takes advantage of risk-appetite

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"He [Shinzo Abe] won (the election) in a landslide and immediately announced that he would add further fiscal stimulus - that is, to continue Abenomics and try to succeed in his aim of bringing the Japanese economy back to life, as well as increasing inflation. That is causing the yen slide at the moment." 
- Commerzbank (based on Business Recorder) 


Pair's Outlook
The Euro weakened against the Japanese Yen for the sixth consecutive time on Friday, but still managed to remain above the 111.00 major level. Demand around that area appears to be strong, pushing the exchange rate higher today, with the main catalyst being the return of risk-on sentiment. The weekly PP acts as the closest resistance, but it is unlikely to keep the EUR/JPY cross for appreciating further. The second level is the weekly R1, located at 113.50; however, in case bulls continue to drive the Euro higher, we might see the 114.00 mark retaken. Technical indicators, on the other hand, are unable to confirm the outlook with their signals. 

Traders' Sentiment
Bullish market sentiment returned to its Thursday's level of 61%, while all pending orders are equally divided between buy and sell ones.
© Dukascopy Bank SA

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