© Dukascopy Bank SA
- CIBC (based on Business Recorder)
Pair's Outlook
The EUR/JPY cross began the weak on a rather negative note, having lost more than 120 pips on Monday. As a result, the immediate support cluster was pierced, opening the door for another possible bearish development. The only thing preventing the Euro from sliding further down is the weekly S2, located at 119.72; however, a much strong demand area is located below the 119.00 handle, represented by the monthly S2, the weekly S3 and the 100-day SMA. The European single currency is unlikely to drop that low just yet, but with the breach of the recent 120.50 support, this target is expected to be reached in the near future.
Traders' Sentiment
Today 54% of traders are long the Euro, compared to 52% yesterday. Meanwhile. The share of buy orders declined from 66 to 48%.
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