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"There's plenty of doom and gloom on the growth front pushing the euro lower. Part of it can be explained by the firmer tone in the dollar, partly due to China. The euro is on the back foot."- Jane Foley, Rabobank International (based on Bloomberg)
Pair's Outlook
The shared European currency slipped lower against Japan's Yen, deepening a bearish correction on EUR/JPY. If bearish momentum to go on, 96.18 (Upper Support line) might become an initial support level for bearish traders. A breakout of this line would expose 95.14 (Lower Support line) and 92.93 (S2 Weekly), respectively.
Traders' SentimentTraders' sentiment remains bullish on EUR/JPY today, though it slightly weakened compared to yesterday as 65% of market participants are presently long on the currency pair and 35% of traders still expect the pair to decline further. The allocation of long and short positions points at a weakening bullish sentiment as 54% of investors expect the pair to advance over the middle term.
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