© Dukascopy Bank SA
- Mizuho Financial Group Inc. (based on The Business Times)
Pair's Outlook
Friday was a beneficial day for the European single currency, being that it surged nearly 100 pips against the Yen. The EUR/JPY cross managed to retake the 121.00 major level, now facing a strong resistance circa 121.45, formed by the 55-day SMA and the upper Bollinger band. In case another rally occurs, this area is expected to limit those gains. A bearish development is more likely, as some profit taking should be seen after nearly a full week of gains. Moreover, technical indicators are giving bearish signals today, bolstering the possibility of the negative outcome. The immediate demand cluster is expected to hold, preventing the given cross from falling back below 120.00.
Traders' Sentiment
Bulls are barely outnumbering the bears, as only 51% of all open positions are long. The share of buy orders inched up from 41 to 56%.
© Dukascopy Bank SA