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- Thu Lan Nguyen, Commerzbank (based on Business Recorder)
Pair's Outlook
The EUR/JPY cross underwent the anticipated decline on Tuesday, with the 119.75 psychological support successfully limiting the losses. However, political turmoil in France keeps weighing on the European single currency, which caused strong downside volatility earlier today. As a result, the given pair could easily close trade below the 100-day SMA, as it is on the verge of breaking through the 119.00 major level. The demand cluster circa 118.75, represented by the Bollinger band, the weekly and the monthly S2s, could still limit the losses, while a drop lower would open the door for the 200-day SMA at 117.75 to be reached.
Traders' Sentiment
Traders' sentiment turned bullish, with 53% of all open positions being long (previously 27%). The share of buy orders surged from 53 to 62%.
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