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- Societe Generale (based on FXStreet)
Pair's Outlook
Friday ended with the EUR/JPY cross experiencing a small decline of 22 pips, an insignificant setback in the pair's recently-begun recovery trend. The European single currency is now expected to outperform the Japanese Yen again, even though technical indicators in the daily timeframe suggest otherwise. However, the Euro is to encounter relatively strong resistance at 121.50, represented by the weekly R1 and the 20-day SMA. A successful break would open the door for a rally towards 122.00, where the 55-day SMA coincides with the monthly PP. Meanwhile, from the downside the monthly S1 and the weekly PP form a tough demand area, which is to limit any possible losses if such occur.
Traders' Sentiment
Market sentiment remains bullish, now at 58% (previously 60%), whereas the share of buy orders inched up from 50 to 52%.
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