© Dukascopy Bank SA
- UBS (based on Bloomberg)
Pair's Outlook
As it turned out, the cluster of pivots and the 20-day SMA at 128.73/57 was enough to hold the price from falling further. Should it have happened, the 100-day SMA at 128.13 and 127.37 would be there to provide even more support. In the meantime, EUR/JPY is moving onwards and is likely to gain a toehold above the 55-day SMA, before testing the closest resistance at 131.24/18.
Traders' Sentiment
There are now more people seeing the Euro as bullish relative to the Japanese Yen than last week, but it does not change the fact that the sentiment towards EUR/JPY remains bearish—43% of positions are long and 57% are short. In its currency pairs the Euro is bought in half of the cases.
© Dukascopy Bank SA