© Dukascopy Bank SA
- Credit Agricole SA (based on Bloomberg)
Pair's Outlook
Risk aversion pushed the EUR/JPY cross lower, boosting demand for the safe-haven Yen yesterday. As a result, the pair dropped below the 113.00 major level, negating most of previous week's gains. With the risk-off sentiment remaining strong in the markets, the Euro is expected to weaken for another day, without the immediate support in face of the weekly S1 limiting the losses. A much stronger cluster is located around 110.25, represented by the weekly S2 and the Bollinger band, with the 110.00 mark also acting as a tough psychological obstacle. Technical studies, on the other hand, retain mixed signals, unable to confirm the outlook.
Traders' Sentiment
Today 55% of traders are long the Euro, compared to 59% previously. At the same time, the share of purchase orders surged from 39 to 58%.
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