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- Daiwa Securities Group Inc. (based on Bloomberg)
Pair's Outlook
After a strong beginning of the week and even stronger advance on last Friday, the EUR/JPY cross has lost its bullish momentum. For the time being the pair is stuck around the 143 level, where the weekly and monthly R1 at 132.80/97 are located. If the pair fails to consolidate above these levels then we might see a retreat lower, possibly towards the major level at 141. The technical indicators are neutral at the moment.
Traders' Sentiment
The sentiment remains unchanged as 59% of the SWFX market participants have opened short positions on the pair, expecting a decline. At the same time the gap between the buy (40%) and sell (60%) orders is narrowing.
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