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– BNP Paribas (based on Bloomberg)
Pair's Outlook
The EUR/JPY currency pair remained relatively unchanged on Monday, having lost only 13 pips that day. The cross appears to be struggling to climb over the 100-day SMA, as it has been declining every since it was reached last week. There is room for a small rally of approximately 33 pips today, namely towards the 100-day SMA and the 50% Fibo. Technical indicators also suggest a rally, but bears seem to have taken over the market. The nearest area to limit the losses rests at 115.07, represented by the weekly pivot point. However, a much stronger cluster is located around 114.15, where a rebound is expected to occur.
Traders' Sentiment
Today only 61% of all open positions are long, in comparison to 62% on Monday. At the same time, the portion of orders to sell acquire the European currency increased from 51 to 59%.
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