- Takeshi Minami, chief economist at Norinchukin Research Insititute (based on Bloomberg)
Pair's Outlook
EUR/JPY started its trading session in the red zone, resulting in losses for the sixth consecutive day. In case the downward momentum is set to persist, the Euro might find support circa 118.20 where the weekly S1 and the lower Bollinger Band are located. The nearest resistance level restricting the upper movement is the weekly PP at 119.26. It is expected that the next resistance area formed by the weekly R1, the monthly PP and the 20-day EMA around 120.10 will be out of reach today. Technical oscillators, however, are steadily approaching the oversold region, indicating that an upward momentum might occur soon.
Traders' Sentiment
Market sentiment is almost neutral, with 51% of traders holding long positions. In addition, 57% of set up orders are to buy the Euro.
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