© Dukascopy Bank SA
– based on Action Forex
Pair's Outlook
The given cross began the week with a 55-pip rally, which was still insufficient to reverse the bearish trend. Technical studies are also in favour of a possible bearish outcome, despite the pair now being supported by the weekly PP at 113.36, just over 20 pips below today's opening price. Ultimately, the Euro could completely negate yesterday's gains, but a drop below 112.50 is doubtful, as that area kept the exchange rate afloat through all of the previous week. Longer term risks, however, are skewed to the upside, as the EUR/JPY currency pair has formed a broadening falling wedge pattern.
Traders' Sentiment
Bulls keep gaining numbers, as 72% of all open positions are long (previously 68%). At the same time, the portion of sell orders inched up from 49 to 53%.
© Dukascopy Bank SA