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— Bank of America (based on Reuters)
Pair's Outlook
In spite of some minor volatility, the EUR/JPY currency pair remained completely flat on Wednesday. The pair found itself locked in a tight range, namely between the 55-day SMA from below and the weekly PP and monthly R1 from above. A significant downside movement is doubtful, as even if the 55-day SMA fails to hold the given cross afloat, then the 20 and the 100-day ones around 120.50 are expected to prevail. Moreover, technical indicators keep giving bullish signals, implying the Euro is to soon reclaim the 122.00 major level. Consequently, the main target remains unchanged—the 123.50 handle.
Traders' Sentiment
Bulls are barely outnumbering the bears, as 51% of all open positions are long today. At the same time, the number of orders to acquire the Euro inched up from 59 to 62%.
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