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- Commerzbank (based on FXStreet)
Pair's Outlook
Yesterday the European single currency inched down for the second consecutive day, with the 55-day SMA managing to limit the losses. The given SMA retains its role of the immediate support, which is likely to cause the EUR/JPY cross to regain the bullish momentum today. Although technical indicators are unable to confirm this scenario, chances of another leg down are just slim. The weekly S1 and the Bollinger band now form resistance just under the 121.00 mark, but are unlikely to prevent the pair from appreciating. The second target, however, remains out of reach around 122.15, namely the 20-day SMA, the weekly and the monthly PPs.
Traders' Sentiment
Bulls lost some numbers over the day, being that 53% of all open positions are now long, compared to 55% on Tuesday.
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