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- Bank of Tokyo-Mitsubishi (based on WBP Online)
Pair's Outlook
The Euro was able to reconquer the 116.00 major level, while also completely erasing previous two-day losses. However, the bullish momentum is likely to fade at this point, with the upcoming BoJ monetary policy meeting awaited. As a result, we should see the EUR/JPY cross inch lower today, despite technical indicators retaining bullish signals. The monthly PP and the weekly S1 around 115.75 now represent immediate support, expected to limit the losses, meaning that the pair risks slipping back under 116.00.
Traders' Sentiment
Bullish market sentiment returned to its Tuesday's level of 58%, compared to 59% on Wednesday. At the same time, the portion of orders to purchase the European single currency declined, having fallen from 58 to 52%.
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