Technical Analysis

Technical Analysis

EUR/JPY trades lower before French election
Fri, 21 Apr 2017 14:01:10 GMT
Source: Dukascopy Bank SA

"It is kind of reminiscent of the big events last year where people know that it is a binary outcome so the best approach is to remain as cautious as possible." 
- Simon Derrick, Bank of New York Mellon (based on Reuters) 

Pair's Outlook 
Not being able to overcome the resistance cluster formed by the weekly R1 and the monthly S1 circa 117.22, EUR/JPY tumbled during the first hours of today's trading session. This move has erased a major part of its Thursday gains. The closest support located at 116.21 may give the Euro enough room for a free fall. Nevertheless, it is unlikely that this level is reached today. It is expected that the pair may close slightly below the 61.8% Fibonacci retracement. In a less likely scenario, the downside volatility may reduce in strength, setting the pair for a close above this level. The market remains cautious in anticipation of the first presidential election round in France this Sunday. 

Traders' Sentiment 
Today's market sentiment is bullish, as 61% of open positions are long. In addition, 60% of set up orders are to buy the Euro.
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