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– Credit Agricole SA (based on Bloomberg)
Pair's Outlook
The EUR/JPY cross behaved mostly according to expectations, having stabilised between yesterday's first and second resistance areas. However, trade closed slightly lower than anticipated, namely at 113.40, indicating that today the pair is likely to trade even lower. The nearest support is now doubtfully going to be sufficient to limit the losses, thus, all focus shifts towards the second support area, namely the cluster around 112.30, represented by the Bollinger band, the weekly S1 and the 23.60% Fibo. Meanwhile, technical studies are unable to confirm the scenario, as they retain mixed signals.
Traders' Sentiment
Bulls keep gaining numbers, with 67% of all open positions being long today, compared to 65% yesterday. At the same time, the share of purchase orders edged down from 58 to 54%.
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