"The strength of the economy in Europe is often overlooked because of potential existential risks that threaten the cohesion of the European Union and the European Monetary "
- Jason Schenker (based on Bloomberg)
Pair's Outlook
EUR/JPY may be forming a downward-sloping channel that is yet to be confirmed. It might be done today if the Euro manages to close in the green area. Technical oscillators bolster the idea of a possible reversal for the second consecutive trading day. However, the 200-day SMA at 117.83 and the near-located weekly PP at 118.02 may provide strong resistance. It is expected that the pair should maintain its upward motion in this session. Likewise, it might persist for a longer period of time in case the 200-day SMA and the weekly PP are breached. The bottom price limit is formed by the monthly S1 at 117.26, 61.8% Fibo and the weekly S1 at 116.99.
Traders' Sentiment
Traders' sentiment for the pair is bullish with 60% of traders holding long positions. In addition, 53% of pending orders are to buy the Euro.
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