"The fact that we are seeing reasonably good data on output and unemployment, that is nice, it is helpful, but the core of it is how much of it is going to map into sustainable inflation."
— Philip Lane, ECB (based on Reuters)
Pair's Outlook
The EUR/JPY cross entered a period of consolidation last week and remained within its borders ever since. The lower boundary is located at 123.50, while the upper one is at 124.50. Today's technical studies imply the Euro is to strengthen against the Yen again, meaning that the immediate resistance, formed by the weekly PP and the monthly R1, is likely to be ignored. As a result, the trend-line at 124.50 is to be put to the test, while also being bolstered by the weekly R1. Altogether this supply area should prevent the European currency from edging higher, but in case bulls continue to press on—the main strong resistance rests circa 126.50.
Traders' Sentiment
Today 58% of traders are short the Euro (previously 62%), whereas 52% of all pending orders are to sell it, down from 58% on Friday.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | -16% | -24% | -20% | |
| Orders | -4% | 16% | 6% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Buy | Buy | Sell | |
| RSI (14) | Sell | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Buy | Sell | Sell | |
| ADX (14) | Buy | Neutral | Neutral | |
| CCI (14) | Neutral | Sell | Neutral | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Buy | Buy | Sell | |
| SAR (0.02; 0.2) | Buy | Buy | Buy | |
| Aggregate | ↑ | ↗ | → | |