"Draghi was clearly reluctant to sanction a changing of guidance with the risk of pushing the euro higher (but) once we get beyond next weekend it may be the time for the euro to have a little bit more of an upswing."
— Patrick Graham (based on Reuters)
Pair's Outlook
EUR/JPY started the first half of this trading day strong, dashing through three resistance levels. The near wedge boundary reinforced by the upper Bollinger band should hinder further appreciation, with the Euro approaching the overbought area. However, it is more likely that the given level will stop the price from trading higher. In addition, the strong upside momentum should not decrease in strength, maintaining the pair above the monthly R1 at 121.52. Technical oscillators demonstrate that the price may start retreating from the 121.85/93 area during the next trading week, setting the Euro's longer-term direction towards the bottom wedge boundary.
Traders' Sentiment
The market sentiment remains unchanged, as 55% of open positions are long. Meanwhile, 63% of set up orders are to buy the Euro.
© Dukascopy Bank SA