© Dukascopy Bank SA
- Credit Suisse (based on CNBC)
Pair's Outlook
Although fears of the possible BoJ intervention sparked a rally in the EUR/JPY cross last Friday, the pair still retreated from its intraday high and remained relatively unchanged. Today the Euro is expected to hold above the 123.00 major level, as this area remained unconquered for more than a month now. Moreover, the Bollinger band is providing immediate support just below the opening price, while technical indicators are retain their mixed signals. Gains are unlikely to exceed the 124.20 level, as this resistance is formed by the weekly PP and the monthly S1, for a breach of which sufficient impetus is absent.
Traders' Sentiment
Even though not as strong as yesterday, but market sentiment remains bullish at 54% (previously 58%). The share of orders to purchase the European single currency edged higher, namely from 36 to 53%.
© Dukascopy Bank SA