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– Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
The EUR/JPY currency pair behaved in accordance with the forecast yesterday, having edged below the 38.20% Fibo level. The monthly PP, the 20 and the 55-day SMAs still form a strong support area just above the 114.00 psychological level, which is now expected to cause the Euro to begin its recovery and put the ten-month down-trend to the test again. However, the weekly pivot point at 114.67 is an obstacle to consider, as it could prevent the given cross from appreciating too much. Furthermore, technical studies retain mixed signals, suggesting that a flat outcome is also possible.
Traders' Sentiment
There are 60% of traders holding long positions today, compared to 55% yesterday. At the same time, the portion of buy orders dropped significantly, namely from 62 to 48%.
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