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- Mitsubishi UFJ Morgan Stanley Securities (based on Bloomberg)
Pair's Outlook
The EUR/JPY cross closed just three pips below the 115.00 major level on Tuesday, unable to maintain trade under the second support area. Nevertheless, the Yen lost some ground, amid hopes of the BoJ implementing more stimulus later this week. As a result, the pair touched the 117.00 mark, which is also reinforced by the weekly PP, but erased approximately half of those gains. The Euro is likely to keep outperforming the Yen today, with the main goal being the retake of the 116.00 level. In order to achieve this the pair is required to pierce the resistance area around 115.75, represented by the monthly PP and the weekly S1. Technical studies are also in favour of this scenario.
Traders' Sentiment
There are 59% of traders being long the Euro today (previously 58%). Meanwhile, the share of purchase orders increased from 39 to 58%.
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