EUR/JPY plummets unexpectedly mid-day

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 42% 43% -2.38%
Shorts 58% 57% 1.72%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Buy Neutral Neutral
Stochastic (5; 3; 3) Neutral Sell Sell
Alligator (13; 8; 5) Sell Buy Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

EUR/JPY demonstrated strong upside momentum in the morning session. The Euro breached the 100-hour SMA at 123.42 and approached a resistance cluster formed by the upper Bollinger band, the weekly PP and the 200-hour SMA circa 123.60/65. Nevertheless, the Euro plummeted unexpectedly mid-day, reaching the lower Bollinger band. Market shocks and worse-than-expected US data resulted in increased demand for the Yen as a save-haven currency, reflecting the given move in the EUR/JPY cross, as well. This strong downside momentum, however, should allay in the nearest time, as the Euro may try to resume its position in the area above the 20-hour SMA. Traders should turn their attention to the FOMC's statement today that may add additional pressure to the Euro either way.

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