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– UniCredit SpA (based on Bloomberg)
Pair's Outlook
The EUR/JPY currency pair overperformed on Wednesday, having closed significantly higher than first anticipated. The rally was so strong that the immediate resistance around 121.00 gave in, opening the door for the given cross to reach the ‘Brexit' high of 122.06. Technical indicators also suggest the Euro is to appreciate again today, but the Bollinger band and the weekly R2 still provide relatively tough resistance on the way to the 122.06 level. Consequently, the single currency is expected to struggle today and is unlikely to climb over 122.00 just yet.
Traders' Sentiment
Bulls are barely outnumbering the bears, as only 51% of all open positions are long today (previously 54%). At the same time, the share of buy orders improved over the day, having risen from 51 to 56%.
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