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- Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
This week has been rather similar to the last one and most likely the EUR/JPY cross will set a fifth straight weekly advance. At the moment the pair is trading just a few pips away from the 2014 high at 145.15. Nonetheless, the daily and monthly technical indicators are bullish, with the first even being strongly bullish. Therefore, a test of this year's high and 2013 high is anticipated. Although, we do not see it breaching the 146 mark due to the lack of Euro strength.
Traders' Sentiment
The SWFX traders are getting less and less convinced that the Euro is going to prolong its advance and overall the bears are in a distinct majority, as they take up 65% of the market, and this is a significant advantage over the bulls (35%).
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