© Dukascopy Bank SA
- PineBridge Investments (based on Bloomberg)
Pair's Outlook
With risk-on sentiment taking over the markets on Friday, the EUR/JPY currency pair dropped below the 114.00 mark, with volatility stretching out even beyond 110.00. The cross remains in a bearish trend, thus, more downside risks are likely to follow, with the Euro even falling to 100 yen eventually. However, technical studies in the daily timeframe are giving mixed signals, suggesting that a possibility of the Euro negating some of its losses exists. The upside border is located around 113.58, represented by the Bollinger band, whereas the lower target is the 109.59 mark, namely last week's low.
Traders' Sentiment
Traders remain bullish on the EUR/JPY pair, with 65% of all open positions being long (previously 66%). Meanwhile, the portion of buy orders slid dramatically—from 79 to 44%.
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