© Dukascopy Bank SA
- MUFG (based on FXStreet)
Pair's Outlook
The European currency overperformed on Tuesday, as not only the immediate resistance was pierced, but also the resistance cluster around 134.30. The EUR/JPY cross stabilised at 134.60 and appears to have depleted its bullish potential, as attempts to return under the 200-day SMA are being made. Nevertheless, poor Japanese fundamentals could still trigger a rally towards 135.24; however, technical indicators suggest otherwise. The base case scenario remains slight decline, as the cluster around 134.30 is providing rather strong support and limiting volatility.
Traders' Sentiment
Bulls and bears pushed closer to equilibrium, as 48% of all positions are long, while the share of buy orders takes up 43% of the market.
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