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— Commerzbank (based on FXStreet)
Pair's Outlook
The EUR/JPY cross closed with a 68-pip loss on Tuesday, meaning that the 122.00 major level gave in. As a result, the European single currency is now under higher risk of posting more losses, with the 55-day SMA at 121.30 being the closest support. However, technical studies suggest a positive outcome is due, which is quite possible, being that the given pair still has not reached its main target—the 123.50 level. Today is unlikely to be an exception, as the upper Bollinger band near 122.70 is expected to limit any gains that would exceed Monday's opening level.
Traders' Sentiment
Today 72% of traders have a positive outlook towards the single currency (previously 51%). At the same time, the portion of orders to acquire the Euro inched up from 56 to 59%.
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