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- Societe Generale (based on Reuters)
Pair's Outlook
A spark of demand for safe-haven currencies on Friday caused the given cross to almost completely erase all gains for the past two weeks. As a result, the EUR/JPY pair stabilised below the 120.00 threshold, with the 119.50 mark becoming the main downside target. The 100-day SMA, the lower Bollinger band and the weekly S1 form a strong demand cluster around 119.30, which is expected to trigger a rebound if the 119.50 psychological level is crossed. Meanwhile, a significant recovery is doubtful, as the weekly PP and the monthly S1 are preventing the Euro from climbing over the 120.30 level. Furthermore, technical indicators suggest the given pair is to keep declining.
Traders' Sentiment
More than two thirds (70%) of all open positions are now short, but the share of sell orders is taking up only 53% of the market.
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