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– Bloomberg
Pair's Outlook
Since the EUR/JPY cross failed to climb over the weekly R1 and remained relatively unchanged on Wednesday, there are doubts the given pair can successfully breach this level today. The weekly R1 is preventing the Euro from retesting the ascending channel's resistance line around 123.75, which in turn is bolstered by the Bollinger band, the weekly R2 and the monthly R1, forming a tough supply area. Technical studies suggest the single currency is to edge higher today, indicating that a close near the upper trend-line is possible. The base case scenario, however, is the cross stabilising below the 123.00 major level.
Traders' Sentiment
There are 54% of traders with a positive outlook towards the Euro today, compared to 37% on Wednesday. However, the number of buy orders slid dramatically, namely from 57 to 36%.
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