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- Commerzbank (based on FXStreet)
Pair's Outlook
Wednesday ended with the Euro experiencing another setback on its path towards the resistance line at 123.50. However, the EUR/JPY cross was unable to post significant losses, suggesting that it still has some steam left. Technical studies are unable to confirm this possibility, but the 55-day SMA can, as it is providing strong support, while also being bolstered by the weekly S1 and the lower Bollinger band. Ultimately, the pair is expected to reach the resistance line and then experience a sharp sell-off, as by that time the 20-day SMA is likely to cross the 55-day one to the downside, providing a signal to sell the European currency.
Traders' Sentiment
Traders' sentiment improved over the day, with 56% of all open positions being long. The share of sell orders increased from 50 to 62%.
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