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- SMBC Nikko Securities (based on The Business Times)
Pair's Outlook
The EUR/JPY cross remained relatively unchanged for another day yesterday, slightly edging lower. The pair appears to be struggling to maintain trade above the 121.00 major level, as volatility stretched beyond this area, but quickly returned back down. Today technical studies insist the Euro is to weaken against the Japanese Yen, and another spark of risk-aversion is confirming this. The weekly PP and the monthly S1 still form immediate support around 120.40—a level the pair failed to cross to the downside for seven days in a row now. However, risks of a breach are now present, with focus shifting to a much strong demand cluster around 119.50.
Traders' Sentiment
There are 62% of traders being long the Euro today (previously 64%). The share of purchase orders increased from 48 to 60% over the day.
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