© Dukascopy Bank SA
– Sillicon Valley Bank (based on Business Recorder)
Pair's Outlook
As was expected, the EUR/JPY cross remained relatively unchanged on Thursday, unable to climb over 116.00. The psychological resistance around this area to be too strong to pierce, thus, the Euro is likely to undergo a decline, despite technical studies suggesting another rally should occur. Demand around 115.85, represented by the 100-day SMA and the 50% Fibo, is insufficient to limit the losses, therefore, the weekly R2 at 115.41 is the main target. Furthermore, the Euro has been outperforming the Yen for a whole week in a row, and it is about time a correction took place.
Traders' Sentiment
Market sentiment barely changed over the day, as 64% of traders hold long positions (previously 63%). The share of buy orders, however, edged down from 64 to 61%.
© Dukascopy Bank SA