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- Mark Farrington, managing director at the London-based fund manager (based on Bloomberg)
Pair's Outlook
There were no surprises in the EUR/JPY pair's performance on Tuesday, being that the cross inched higher that day. However, gains slightly exceeded expectations, as the ascending channel's upper border was pierced, but the immediate resistance cluster was not fully broken. Consequently, there are some risks present that could prevent the Euro from posting more gains, ultimately causing the exchange rate to drop back towards 116.00. In case the closest resistance, now the 61.80% Fibo and the Bollinger band, gives in—the next target will be the tough supply area circa 118.30, formed by the weekly and the monthly R2s.
Traders' Sentiment
Bullish market sentiment returned to its previous Wednesday's level of 59% (previously 61%), while the portion of orders to purchase the Euro lost seven percentage points, having fallen to 45%.
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