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- Capital Economics (based on Market Watch)
Pair's Outlook
For the fourth time in a row the European currency tested the monthly S1 at 134.25, but unlike on Monday, the immediate support failed to hold the EUR/JPY cross from falling. The loss was rather small, but even with the expected rebound today due to falling safe haven currencies, the weekly PP, 20 and 200-day SMAs are providing rather strong resistance. Ultimately, gains are to be limited by the cluster's highest level, namely the 200-day SMA at 135.09, but risks of edging lower persist, as technical studies are showing bearish signs.
Traders' Sentiment
Net positions remain equally divided between short and long ones, while the share of buy orders returned to its Monday's level of 57%.
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