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- RBC Capital Markets (based on CNBC)
Pair's Outlook
The Euro managed to overcome the monthly PP and edge even higher for the sixth day in a row yesterday. The EUR/JPY cross reached a daily high of 130.68, but settled just under the weekly R1 at 130.32. Technical studies retain bearish signals; however, the pair is expected to climb up again. The weekly R1 and the Bollinger band are unlikely to stop the rally, but slow it down, hence; the single currency should stabilise between 131.00 psychological level and the resistance cluster around 131.50.
Traders' Sentiment
Market sentiment remained unchanged, with 56% of traders still being long the Euro. The gap between buy and sell orders widened. Today 74% of all commands are to purchase the single currency.
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