© Dukascopy Bank SA
- Rabobank (based on CNBC)
Pair's Outlook
News that the BoJ might soon implement negative loan rates significantly weakened the Japanese Yen on Friday, causing the EUR/JPY cross to reach the third resistance level—the 55-day SMA at 125.40. Even though the given SMA now acts as the nearest support, the Euro is still expected to undergo a correction, with the target level now being the 20-day SMA around 124.72. Technical indicators in all timeframes are giving bearish signals, bolstering the possibility of the pair closing below the 55-day SMA; however, the exchange rate could recover from its intraday lows and still close above the 125.00 mark.
Traders' Sentiment
There are slightly more traders with a positive outlook towards the European currency, namely 62%, compared to 59% at the end of the previous week. The number of buy orders slid from 76 to 59%.
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