© Dukascopy Bank SA
- Mitsubishi UFJ Morgan Stanley (based on Market Watch)
Pair's Outlook
The EUR/JPY currency pair edged lower for the second time on Friday, having plunged under the 122.00 major level. After such a serious slump the Euro is expected to undergo a correction and climb back over the 122.00 mark, with the closest resistance located at 123.30, represented by the weekly pivot point. However, the given cross is also unlikely to retake the 123.00 mark, as no catalyst is present to push the pair that high. The base case scenario is a close around 122.50, but since technical indicators are giving bearish signals in the medium and longer timeframes, there is a chance the Euro will fall at least towards the immediate support, namely the Bollinger band at 121.32
Traders' Sentiment
Today 65% of all open positions are long (previously 59%), whereas the share of buy orders edged higher, namely from 47 to 53%.
© Dukascopy Bank SA