© Dukascopy Bank SA
- Mizuho Securities (based on Business Recorder)
Pair's Outlook
With the return of risk aversion, the EUR/JPY cross experienced a rather gradual decline of more than 100 pips. The pair has been sliding down ever since it reached the 128.00 major last week. More weakness is likely to follow, with the closest area to provide support located around 125.10, namely the weekly S2 and the Bollinger band. Moreover, the Euro broke out of the ascending channel pattern yesterday completely, implying that the bearish momentum is to be prolonged. Medium and long-term indicators are bolstering this possibility. Meanwhile, any attempts to recover should be contained by the tough cluster circa 126.25.
Traders' Sentiment
Bulls grew stronger over the day, with 69% of traders being long the Euro. The share of buy orders, however, slid from 83 to 57%.
© Dukascopy Bank SA