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- Societe Generale (based on FXStreet)
Pair's Outlook
Even though the EUR/JPY currency pair put the 116.00 major level to the test yesterday, a spark of risk-aversion, triggered by the US election results, caused the given cross to plunge substantially today. The pair dropped over 200 pips, but managed to erase some of those losses afterwards. Nonetheless, the most important demand area today is the one located around 114.40, formed by the 38.20% Fibo, the 20, 55 and 100-day SMAs. A close above this support cluster is the base case scenario, unless the risk-off sentiment continues to boost the Japanese currency further. Ultimately, the Euro is still poised for a recovery and should regain its bullish trend once the election jitters fade away.
Traders' Sentiment
Today 59% of traders are long the Euro (previously 61%), while also 59% of all pending orders are to purchase the single currency.
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