EUR/JPY slides towards 138.50

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Recent ECB action is welcome but further measures, including QE (quantitative easing), are warranted. The perception that policy action is always too little too late needs to be changed."
- OECD (based on Reuters)


Pair's Outlook
EUR/JPY failed to consolidate above the 139 mark, after extremely successful week for the Euro bulls, when the pair appreciated more than 300 pips. After a failure around the 139 level the currency pair received a bearish impetus and fell 50 pips lower, this seems like a correction. Moreover, the short term technical studies are slightly to the downside. Nevertheless, to our mind, a sideways trend could appear, as a decline below the 138 level seems not likely.

Traders' Sentiment
The difference between the long (47%) and short (53%) positions on EUR/JPY are still very stable, suggesting that a slight majority of the traders are sceptical on further advance. At the same time the gap between the buy (58%) and sell (42%) orders is widening.
© Dukascopy Bank SA

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