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- Societe Generale (based on CNBC)
Pair's Outlook
Although the EUR/JPY cross negated Monday's losses at first, the pair still experienced a slump by the end of the day. The support cluster around 136.50 limited the downside volatility, causing the trade to close at 136.97. Today the single currency is supported by the same cluster around 136.50, presented by the 55 and 100-day SMAs and the weekly S2, while immediate resistance lies around 137.40 in face of the weekly S1 and 20-day SMA. Furthermore, technical studies retain mixed signals, once again falsely suggesting the Euro is to remain relatively unchanged against the Japanese Yen.
Traders' Sentiment
Bullish traders' sentiment remains unchanged at 51%, whereas the portion of purchase orders inched up from 40 to 46%.
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