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- Mario Draghi, ECB President (based on Bloomberg)
Pair's Outlook
EUR/JPY is going through a slight bullish correction for the second day now after almost two months of persistent decline. 98.534 (55-day SMA) could serve as the first cap for the pair in near term. In case of continuous downtrend, traders should watch weekly S3 at 91.93 as the first target.
Traders' Sentiment
Bulls are ruling the SWFX sentiment index for the pair, as 83% of traders (up from 50% yesterday) are likely to embark long positions on EUR/JPY. Meanwhile, 16% of market participants believe that downside risks in EU are still rather strong and thus will choose to go short. As mentioned before, turmoil in the Euro-area significantly add to the volatility of the pair.
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