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- Commerzbank (based on FXStreet)
Pair's Outlook
The EUR/JPY cross was rather volatile on Tuesday, but trade still closed with just a six-pip rally. The pair reached a strong support on Monday, which also preventing the Euro from sliding further down on Tuesday and continuing to provide support today. Consequently, the Euro is now likely to appreciate again, this time climbing over the immediate resistance cluster, thus, reclaiming the 122.00 mark. The weekly pivot point is now the main target, located at 122.54. Technical studies are in favour of the positive outcome, as they keep giving bullish signals in the daily timeframe. This rally, however, is unlikely to last, as several other signs point to a possible upcoming bearish trend.
Traders' Sentiment
Market sentiment remains bullish, with 53% of all open positions being long (previously 51%). The share of sell orders surged from 51 to 52%.
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