"The initial estimate of Q1 Japanese GDP growth will be released early Thursday and will be the most important economic release of the morning session."
— Rhys Herbert, Lloyds Bank (based on FX Street)
Pair's outlook
[ANNOUNCE] Today, EUR/JPY met strong resistance at 125.38, setting the pair for a decrease towards the weekly R1 at 124.67.[/ANNOUNCE] It was stranded within the bounds of the given levels on Tuesday, suggesting that the same situation might repeat in this trading session, as well. Considering the strong momentum downwards, a close circa 124.67 is expected. Today's reversal was supposedly driven by the pair being overbought; thus, it might remain its movement north in the following trading days. However, this week may likewise provide the second upside confirmation of a widening wedge pattern in which the pair is currently trading. This indication is in turn bearish in the longer term.
Traders' sentiment
Market sentiment remains bearish, as 56% of traders are holding short positions. Meanwhile, 53% of set up orders are to buy the Euro.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | -12% | -22% | -16% | |
| Orders | 6% | -6% | -4% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Buy | Buy | Sell | |
| RSI (14) | Sell | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Buy | Sell | Sell | |
| ADX (14) | Buy | Neutral | Neutral | |
| CCI (14) | Sell | Sell | Neutral | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Buy | Buy | Sell | |
| SAR (0.02; 0.2) | Buy | Buy | Buy | |
| Aggregate | ↗ | ↗ | → | |