© Dukascopy Bank SA
- BNP Paribas (based on CNBC)
Pair's Outlook
On Friday the EUR/JPY cross reached the 136.00 major level, but was then pushed back by the weekly PP and 55-day SMA resistance cluster, causing the pair to close at 135.53. Immediate resistance is still formed by the same levels, but with the weekly PP now located at 135.75, rather than at 135.97 as last week. There is less room for appreciating today, which might result in a decline towards the 20-day SMA at 135.11, despite technical studies retaining their bullish signals. The base case scenario, however, is a hike towards 135.80.
Traders' Sentiment
Bears are now significantly outnumbering the bulls, with 60% of all positions being short (previously 54%). Meanwhile, the number of sell orders also increased, from 52 to 55%.
© Dukascopy Bank SA