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- Georgette Boele, ABN Amro Bank NV (based on Bloomberg)
Pair's Outlook
The EUR/JPY pair surprised with its performance yesterday, having closed trade with barely any losses registered. This suggests that the Euro received sufficient impetus for a recovery when it touched the trend-line last Friday. A successful rally today is to be limited by the strong resistance cluster around 119.90, represented by the 20 and the 100-day SMAs, the monthly PP and the weekly R1; moreover, a potential down-trend passes through this cluster, thus, it could receive the required confirmation., consequently, forming a falling wedge pattern. Ultimately, an upside breakout would be expected, with the main target being the 121.50/75 area.
Traders' Sentiment
Today 56% of all open positions are long (previously 52%), while 60% of all pending orders are to sell the Euro, up from 44% on Tuesday.
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