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– Commerzbank (based on FXStreet)
Pair's Outlook
The European single currency underwent the anticipated correction on Friday, falling even below the main target of 115.41. However, volatility was unable to stretch out beyond the 115.00 major level, thus, another leg down is unlikely. Furthermore, technical indicators keep giving bullish signals in the daily timeframe, suggesting the EUR/JPY cross is to strengthen today. The 100-day SMA and the 50% Fibo form resistance around 115.82, preventing the pair from inching higher. At the same time, the weekly PP at 115.07 represents immediate support, being the lower border of today's trading range. The base case scenario is a close around 115.30.
Traders' Sentiment
Today 62% of traders hold long positions, compared to 64% last Friday. Meanwhile, the portion of buy orders dropped from 61 to 51%.
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