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"The [Nikkei Stock Average] outperformance has been accompanied by a sharp weakening in the yen, which we do not expect to last."
- Capital Economics (based on MarketWatch)
Pair's Outlook
Today the EUR/JPY currency couple experienced a significant bullish advance, which at the particular moment confronts the monthly R2 at 107.43, which might bring some bearish momentum. In case it is breached, then the currency pair is very likely to reach the upper Bollinger band at 108.30, which in turn is expected to reverse the prevailing movement upwards. Moreover, the overall indicator outlook shows a strong buy signal, therefore supporting the current bullish trend.
Traders' Sentiment
The majority of traders hold short positions (62%), expecting that the prevailing bullish tendency will change in the nearest future. As for pending orders, the distribution is quite neutral, as 58% of traders ordered to buy and 42% ordered to sell the single European currency.
© Dukascopy Bank SA