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- Peter Bofinger, German government advisor (based on Reuters)
Pair's Outlook
The second resistance limited the EUR/JPY currency pair's volatility yesterday, causing the cross to close trade 133.13. Although the cluster is formed by many levels, the 200-day SMA around 134.18 is the key resistance, which kept the pair at bay for three weeks now. Technical indicators are bolstering the possibility of a rally today, but nonetheless, the Euro remains under the risk of edging lower, despite being supported by the weekly PP and 55-day SMA. The sell-off could reach the second target, namely the monthly R1 and weekly S1 at 132.30.
Traders' Sentiment
Open positions are equally divided between long and short ones, while sell orders are outnumbering the buy ones by only 2% points.
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