© Dukascopy Bank SA
– AmplGFX (based on FXStreet)
Pair's Outlook
The European single currency weakened against the Japanese Yen on Friday slightly more than anticipated, having breached the 38.20% Fibo at 114.36. Nevertheless, the pair opened with a small bullish gap today, making the 38.20% Fibo a viable support once again, still being bolstered by the monthly PP, 20 and 55-day SMAs. Consequently, the cross is unlikely to drop to 114.00, being the tough demand area is located in front of that level. Another leg down is the base case scenario, with the Fibo doubtfully holding due to Friday's initial breach. On the other hand, technical indicators retain mixed signals, leaving the possibility of a rally towards the weekly PP at 114.67 open.
Traders' Sentiment
Today only 55% of traders are long the Euro, compared to 57% on Friday. Meanwhile, the share of buy orders inched up from 52 to 62%.
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