© Dukascopy Bank SA
On the contrary to USD/JPY, the Euro/Yen cross has violated the lower boundary of the ascending triangle pattern on Friday of the previous week. Since then the overall losses have been extended down to the 133.15 level, where bulls found some support yesterday. At the moment there is a slight rebound taking place in the market, while daily and weekly technical studies assume there is room for a continuous rally in the long term. Our outlook is less optimistic, considering a dense resistance area (SMAs, monthly PP) above the spot price, namely in the range between 135 and 136.60. Market participants are therefore largely undecided on the matter (48% bullish vs 52% bearish).
© Dukascopy Bank SA