© Dukascopy Bank SA
– based on FX Street
Pair's Outlook
A bold move is being attempted by EUR/JPY as the pair is pushing through September lows at the tough 114.36/50 support level, and threatening to close beneath. A successful break below would leave little to the bottom trend-line of the two-month triangle at 114.08, and a breach of the pattern could imply a deeper sell-off with risk at 113.03. We are, however, looking for the pair to bounce from the triangle trend-line and remain inside of the Ichimoku cloud, extending the consolidation with short-term supply risks implied by the Tenkan-sen location. The pair will float smoothly towards the upper trend-line of the triangle, implied by lacking supply pressures inside of the pattern.
Traders' Sentiment
Sentiment remains bullish with 66% of positions being long (previously 63%). The share of buy orders has increased from 56% to 60%.
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