"We're still hugely vulnerable to political risks. Polling for the first round of the French election is hugely tight. We have no clear indication of how the drama in North Korea will play out. And those factors are more important to us than the ebb and flow of earnings news in the short term."
- Christopher Jeffery, Legal & General Investment Management (based on Bloomberg)
Pair's Outlook
EUR/JPY continues to trade in a minor upward channel in the hourly chart, showing some upside potential until its boundary circa 117.20, at least. This level may provide strong resistance reinforced by the 61.8% Fibo, the weekly R1 and the monthly S1. The current upward movement of the Euro may be guided by the positive inflation data reported by the ECB; however, it is yet to be seen if the upside volatility is also sustainable in a longer term with French elections just days away. It is expected that the pair may close in the green area today, testing the above-mentioned resistance cluster around 117.20 but not exceeding it.
Traders' Sentiment
Today's market sentiment remains bullish, as 70% of open positions are long. Meanwhile, 56% of pending orders are to buy the Euro.
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