"Part of the fall in EUR can be accounted for by dovish rhetoric from key ECB council members and a lower than expected CPI inflation report in March. "
- Sandeep Kanihama, FXStreet
Pair's Outlook
EUR/JPY closed the Monday's trading session in the red area. Today, the strong downside volatility demonstrates the prevalence of bears, suggesting further depreciation for the Euro. This decline, however, is restricted by the monthly S1 at 117.26 that has already provided support on several occasions. This level is likewise reinforced by the weekly S1 and the lower Bollinger band. Technical oscillators are located in the oversold territory. Nevertheless, it is yet to be seen if the anticipated reversal occurs. It is expected that the pair will close today within the bound of the monthly and weekly S1s.
Traders' Sentiment
There are 61% of all open positions being long today. Moreover, 57% of pending orders are to buy the pair.
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