© Dukascopy Bank SA
- Societe Generale (based on FXStreet)
Pair's Outlook
The Euro's rally on Friday reconfirm the current consolidation trend, with price closing only at 123.23. With the exchange rate now being dangerously close to the trend's upper border, namely the 123.50 level, the EUR/JPY cross is now likely to make a U-turn, sliding back under 123.00. The weekly PP and the 20-day SMA form immediate support circa 122.80, but given the nature of the current trend, a drop as low as 122.00 is possible, meaning the second demand area is more reliable, which is represented by the weekly S1, the monthly PP and the lower Bollinger band.
Traders' Sentiment
Market sentiment is now bearish, with 60% of traders holding short positions, compared to 45% on Friday. Meanwhile, 59% of all pending orders are to acquire the Euro (previously 47%).
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