EUR/JPY on the brink of breaking its consolidation trend

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"European political uncertainty has the capacity to boost volatility and push EUR/JPY lower in the coming months." 
- Rabobank (based on FXStreet) 


Pair's Outlook 
As was anticipated, the EUR/JPY cross failed to climb over the monthly pivot point on Friday, but, nonetheless, still managed to end the day in the green zone. The safe-haven Yen is now in demand amid Brexit concerns; thus, the given pair opened with a small bearish gap today and is expected to close trade in the red zone as well, despite technical indicators giving bullish signals. As a result, the five-week consolidation trend is likely to reach its end, unless the Euro miraculously recovers today. The weekly S1 at 120.84 is the nearest support, but losses could extend towards 120.00, where the 55-day SMA, the monthly S1 and the weekly S2 form a relatively strong demand cluster. 

Traders' Sentiment 
Market sentiment is now equally divided between bulls and bears, whereas the portion of buy orders surged from 47 to 63%.
© Dukascopy Bank SA

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