"Markets have pretty much priced out the risk of a Le Pen victory, and rightly so, because the first round of the elections has shown that the polls in France were correct...and this increases the confidence in the polls for the second round...It's highly likely that (Macron) is going to win."
— Thu Lan Nguyen, Commerzbank (based on Reuters)
Pair's Outlook
The confidence in the European common currency continues to increase, as EUR/JPY managed to dash through the 55-day SMA, the weekly R2, the 38.2% Fibo and the monthly PP in the first half of today's trading session. It is expected that the pair might maintain its upward volatility, setting the upper Bollinger band at 120.37 as the possible ceiling for today. Technical oscillators, however, are located near the overbought territory, signalling that a reversal may be due in the nearest time. Nevertheless, this change in direction may be a minor correction against the general wave directed towards the upper boundary of the descending broadening wedge.
Traders' Sentiment
Market sentiment has remained at the same level, as 62% of open positions are long. In addition, 61% of set up orders are to buy the pair.
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