© Dukascopy Bank SA
"The euro, on the other hand, is being supported by inflows into European stocks and together with the current account situation, we should see a bit of upside in the euro."
- Credit Agricole (based on Reuters)
Pair's Outlook
Pair is starting to demonstrate bearish bias. As a consequence we could expect it to start the new trading week below the 100-day SMA. This would most likely initiate at least minor bearish action in the beginning of the week which could sent the pair as low as 140 JPY. Dip below it could easily fuel further selloff until 139 JPY. Opening above 141 in the new week or peak above weekly PP in the current week could encourage bulls to push the pair higher.
Traders' Sentiment
Market sentiment remains unchanged as 53% of traders remain short on the pair. However, long side of pending order's expanded by at least 6% and returned above 50% gauge, till 55-60% overall level depending on the range around current market price.
© Dukascopy Bank SA