EUR/JPY: more miracles eyed

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Volatility is rising as investors start to prepare for the elections. I think investors are going to play this (the elections) on the options market. If you go short euro and you are wrong, it is too directional." 
- Thu Lan Nguyen, Commerzbank (based on Business Recorder) 

Pair's Outlook 
Despite concerns over the French presidential election, the Euro managed to erase most of its intraday losses against the Yen on Wednesday, with trade closing above the nearest support. As a result, the 119.50 psychological demand level also remained intact, which could now trigger EUR-buying. Technical studies are no longer giving bearish signals and a number of levels keep providing strong support—these factors suggest the given cross could appreciate today. The ceiling is still likely to be the 120.30 mark, where the weekly PP coincides with the monthly S1.  

Traders' Sentiment
Market sentiment improved further, with 57% of all open positions now being long (previously 53%). At the same time, however, the portion of buy orders inched down from 62 to 56%.
© Dukascopy Bank SA

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