EUR/JPY consolidates between 121.00 and 123.50

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The recovery in global inflation could make the ECB's stance more optimistic as political risks decline, and central banks' policy stance is likely to be gradually more positive for EUR/JPY from H2 2017 onwards." 
- Nomura (based on FXStreet) 


Pair's Outlook 
Monday ended with the EUR/JPY pair edging lower and, as expected, with the immediate support failing to limit the losses, but with the second one succeeding. The Euro is still supported by this demand cluster, represented by the weekly S1, the 55-day SMA and the Bollinger band. Despite the setback, this support cluster should cause the given cross to make a U-turn, helping erase some of Monday's losses. The 122.00 mark is unlikely to be retaken, but not due to the resistance around it, the Euro simply lacks impetus for a surge that far. Technical indicators keep giving mixed signals, suggesting the pair is to keep consolidating between 121.00 and 123.50.

Traders' Sentiment 

There are 55% of traders with a positive outlook towards the single currency today, while the share of buy orders slid from 58 to 54%.
© Dukascopy Bank SA

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