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- Nordea Bank AB (based on Bloomberg)
Pair's Outlook
The EUR/JPY cross remained almost completely flat on Wednesday, but with the immediate resistance area still failing to keep the pair at bay. This cluster is now providing support, providing solid ground for the Euro to keep appreciating against the Japanese Yen, despite technical indicators retaining their bearish signals. This time the weekly R3 at 117.18 took the role of the closest resistance, with the second area located only around 119.80, represented by the 55-day SMA and the Bollinger band. The second cluster is the final obstacle before the European currency could retest the six-month down-trend, a breach of which would be a first sign of trend reversal.
Traders' Sentiment
Bullish market sentiment returned to its Monday's level of 61%, while all pending orders are equally divided between buy and sell ones.
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