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- Natixis (based on FXStreet)
Pair's Outlook
Once again the EUR/JPY cross edged higher, continuing to appreciate on Wednesday after bottoming out last week. Technical studies keep giving bearish signals in the daily timeframe, but the Euro is still expected to keep rising against the Yen. The first target is the cluster around 121.40, represented by the 20-day SMA and the weekly R1, but the main one is still the 122.00 major level, where the 55-day SMA coincides with the monthly PP. In case bears take over the market, the 120.40 handle is likely to prevent the single currency from falling deeper, as demand around that area managed to provide sufficient support on several occasions.
Traders' Sentiment
Market sentiment improved for the fourth consecutive time, as 64% of all open positions are now long (previously 62%).
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