"If prior swing support around 124.50 gets taken out after bulls were unable to over-take the prior swing-high at 125.82, the door could be re-opened to short-term bearish momentum strategies."
— James Stanley (based on Daily FX)
Pair's outlook
In line with expectations, EUR/JPY closed Thursday's trading session at 125.40 - the highest level since April 2016 that had already provided resistance last week. It proved to be strong enough to halt the Euro and turn it south today. Downside risks are moving the rate towards the weekly PP at 124.36; however, this level might be breached, regarding the next support formed by the monthly R1 and the 20-day SMA as a more probable stopping point for the bearish momentum. In general, it might be expected that the Euro re-tests the 125.39 mark next week. Nevertheless, no massive surges north should occur, as further depreciation is a more likely scenario.
Traders' sentiment
Bearish sentiment is strong today, as 62% of traders are holding short positions. Meanwhile, 53% of pending orders are to buy the pair.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | -24% | -18% | -12% | |
| Orders | 6% | -6% | -2% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Buy | Buy | Sell | |
| RSI (14) | Neutral | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Sell | Sell | Sell | |
| ADX (14) | Buy | Neutral | Neutral | |
| CCI (14) | Neutral | Sell | Sell | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Buy | Buy | Sell | |
| SAR (0.02; 0.2) | Buy | Buy | Buy | |
| Aggregate | ↗ | ↗ | ↘ | |