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- Yasuo Yamamoto, Mizuho Research Institute (based on Reuters)
Pair's Outlook
Even though with a little hesitation EUR/JPY still managed to climb over an intersection point of an up-trend and a down-trend resistance lines at 103.63, meaning that a sharp two-day rally of 270 pips initiated last Wednesday carries a significant amount of an upside potential. The closest targets are situated at 104.95 and 105.29/48, but are likely to strongly oppose additional gains of the Euro.
Traders' Sentiment
The share of traders with negative sentiment towards the Euro increases and has already reached 57% of the market, while bulls constitute 43% of the total amount and lose their positions. As for the orders, the ratio between buy and sell orders is also in favour of a bearish scenario, being 47% to 53%, accordingly.
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