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– Dai-ichi Life Research Institute (based on Reuters)
Pair's Outlook
Just last week the EUR/JPY cross reconfirmed the ten-month trend-line, which is the upper border of a broadening falling wedge pattern. After meeting the resistance the pair appears to have began moving lower, but has been having trouble falling below the 114.00 major level, with a tough support area, represented by the 38.20% Fibo, the monthly PP, the 20 and the 55-day SMAs, bolstering it. Meanwhile, the weekly PP acts as the nearest resistance, limiting the pair's volatility. The Euro is expected to trade between 114.00 and 115.00, while technical indicators are in favour of a bullish development.
Traders' Sentiment
Market sentiment remains bullish at 59% today, whereas the share of purchase orders added nine percentage points. The orders now take up 52% of the market.
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