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– Sillicon Valley Bank (based on Business Recorder)
Pair's Outlook
On Tuesday the Euro soared against the Japanese Yen, reaching the three-month down-trend. Technical indicators are now giving mixed signals, rather than bearish, implying that the current correction could last longer. The closest resistance is the weekly R2 at 115.41, but it will doubtfully prevent the EUR/JPY cross from edging higher. Gains, however, are unlikely to extend above 116.00, as a tough resistance cluster, represented by the 50% Fibo, the 100-day SMA, the Bollinger band and the monthly R1, is located there. On the other hand, the pair has been appreciating for six consecutive days, thus, risks of a correction occurring are relatively high.
Traders' Sentiment
There are 65% of traders being long the Euro (previously 54%) today, whereas the share of sell orders inched up from 55 to 56%.
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