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- EU Officials at the EU summit in Brussels (based on Reuters)
Pair's Outlook
EUR/JPY is trading with bearish mood as the EU summit has not delivered any concrete plans to address the debt turmoil. If an upbeat trend emerges, then 101.58 (55-day SMA) is likely to be the first target to be tested by bullish investors. If this level is successful pierced, a path towards 102.15 (R1 Weekly; Upper Bollinger band) and 104.55/65 (100-day SMA; R3 Weekly) will be cleared.
Traders' Sentiment
The market sentiment on EUR/JPY is still bullish as the majority of market participants (63%) holds long positions. At the same time, allocation of orders by currency traders indicates that 70% of traders expect the pair to decline further in the middle term.
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