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- Nordea Markets (based on Bloomberg)
Pair's Outlook
On Friday the appeal for safe-haven assets caused the EUR/JPY to break the six-month support line of its bearish channel, but with the target support limiting the losses. The pair could still recover today and preserve the pattern if the risk-on sentiment triggers a sufficient rally; however, technical studies in all timeframes now suggest the cross is to edge lower. As a result, the single currency could weaken beyond the 124.69 level, where the Bollinger band lies. The next target to stop the losses is located only around 124.00, namely the weekly S1 and the monthly S2.
Traders' Sentiment
Today 60% of traders are long the Euro, compared to 65% on Friday. The number of orders to purchase the Euro surged from 39 to 81%.
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