EUR/JPY plunges due to Brexit

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"If both sides can understand and accept the existence of legitimate concerns on the other side, negotiations can succeed. And Brexit need not spell disaster for either Britain or the EU."
- Mogens Peter Carl (based on Guardian)


Pair's Outlook
The pair was trading within the bounds of an upward sloping channel during the first hours of today's trading session. However, the UK invoking Article 50 mid-day resulted in a plunge, pushing the Euro downwards through the lower near-term channel line and closer to a support cluster formed by the weekly S1 and the 20-day EMA around 119.10. Expectations about the currency's direction are bearish, with 55-day and 100-day SMAs forming the death cross and technical indicators signaling downwards. It is expected that the Euro will test the above-mentioned support, closing near this level. 

Traders' Sentiment
There are 74% traders holding long positions, compared to 56% yesterday. In addition, 52% of pending orders are to buy the Euro.
© Dukascopy Bank SA

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