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- Bloomberg
Pair's Outlook
The EUR/JPY currency pair closed with a 62-pip loss yesterday, thus, unable to remain above the possible psychological support of 121.60/50. As a result, the cross now risks sustaining more losses, with the 121.00 handle unlikely preventing the Euro from falling deeper down. The main target from below is the 120.50 level, where the lower Bollinger band, the weekly S2 and the monthly S1 form a strong demand cluster. A solid positive outcome is also doubtful, as technical indicators shifted from bullish signals to mixed, while a tough resistance area on the Euro's path is unlikely to breached today.
Traders' Sentiment
Market sentiment worsened significantly, as now 68% of all open positions are short (previously 54% were long). Concerning the pending orders, the portion of the buy ones inched down from 53 to 47%.
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