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"The markets don't have many catalysts today. The yen is slightly weakening, which is boosting shares, and the situation abroad is calming down, including in the U.S."
- Yoshihiro Ito, Okasan Online Securities (based on Bloomberg)
Pair's Outlook
The single European currency is posing for further appreciation against Japan's Yen after forming a triple bottom formation in the last three weeks. If bullish momentum is to persist pair must breach 97.339 (Weekly R1) which would pave the way above 55 day SMA and Bollinger band at 98.430. However, if the pair decelerates, 97.413 (Monthly PP) should be a strong support level for the pair.
Traders' Sentiment
Traders' sentiment remains bullish on EUR/JPY today, though it dropped by 5% compared to yesterday as 70% of market participants are presently long on the currency pair and 30% of traders still expect the pair to decline. The distribution of buy and sell orders points at a weakening bullish sentiment as 55% of investors expect the pair to appreciate over the middle term.
© Dukascopy Bank SA