© Dukascopy Bank SA
- Sumitomo Mitsui Banking Corp. (based on Bloomberg)
Pair's Outlook
Just one bearish bar as a correction for a recent 129.39-130.71 rally and EUR/JPY is again challenging a combination of the weekly R1 and an upper Bollinger band, willing to extend the gains beyond 131.26/130.74. Once this resistance is broken, next area to test the strength of the bullish momentum is formed by the monthly R1 and weekly R2.
Traders' Sentiment
Although there are many arguments in favour of a stronger Euro, the amount of bullish towards the single currency traders is slightly smaller that the amount of bears, who constitute 52% of the market. More or less the same situation is between the buy and sell orders placed on EUR/JPY—51% to 49% accordingly.
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