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— Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. (based on Bloomberg)
Pair's Outlook
Monday ended with the Euro weakening against the Yen again, but with no significant level getting pierced. Despite high volatility experienced today, the given cross is expected to remain within its trading range, namely between the 55-day SMA from above and the 20 and 55-day ones from below. The question is whether the immediate demand area can hold, as the overall trend is bearish, and the EUR/JPY has been mostly weakening since the retest of the down-trend last week. The main support is the monthly pivot point, located at 120.01. Once the 120.00 mark gives in, the Euro could continue falling towards the 200-day SMA at 117.62.
Traders' Sentiment
Both the share of long positions and pending orders remain unchanged since yesterday, taking up 50% and 60% of the market, respectively.
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