EUR/JPY to reclaim 1.22

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"European political uncertainty has the capacity to boost volatility and push EUR/JPY lower in the coming months." 
- Rabobank (based on FXStreet) 

Pair's Outlook
The Euro weakened against the Japanese Yen for the fourth day in a row yesterday, but with the consolidation trend remaining intact. There is barely any place left for the EUR/JPY pair to decline if the trend is to be preserved. Consequently, the cross is expected to rebound and reclaim the 1.22 major level. However, further gains could be problematic, being that the monthly PP, the weekly S1 and the 20-day SMA represent relatively strong resistance around 122.25. A successful breach of this resistance would open the door for a surge towards 123.00, but not further, as the weekly PP and the Bollinger band form resistance there.  

Traders' Sentiment 
Today 54% of traders long the Euro, compared to 48% on Thursday. At the same time, the share of purchase orders declined from 51 to 47%.
© Dukascopy Bank SA

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