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– BBH (based on Business Recorder)
Pair's Outlook
With turmoil around Italy quickly faded, the EUR/JPY cross successfully surged on Monday, managing to climb over the June 23 high, thus, establishing a new seven-month high. Although technical studies keep insisting the European single currency is to post more gains today, in reality a bearish correction could take place. The nearest resistance is now located at the 123.00 mark, also bolstered by the upper Bollinger band, while the next target rests only around 123.80, namely the monthly R1 and the weekly R2. At the same time, the weekly R1 at 122.50 represents immediate support, but in case bears do prevail today this level is unlikely to limit the losses.
Traders' Sentiment
Bulls and bears broke out of equilibrium, as 59% of all open positions are short today. Meanwhile, 55% of all orders are to sell the Euro.
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