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- Nomura (based on Bloomberg)
Pair's Outlook
Risk aversion drove the EUR/JPY lower on Monday, with the pair suffering a larger than a 90-pip loss. In case the risk-off sentiment prevails today as well, the 122.00 major level is expected to provide sufficient support to keep the cross elevated. Moreover, the given psychological support is also reinforced by the weekly S2, making the cluster even stronger. Meanwhile, the weekly S1 represented immediate resistance, located at 122.78, which appears to be weighing on the Euro. Technical indicators are also unable to confirm either scenario, as they retain mixed signals.
Traders' Sentiment
Market sentiment is now equally divided between the bulls and the bears, while the portion of orders to acquire the European single currency inched lower from 74 to 68%.
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