"The yen's gains against the euro also bears watching, with uncertainty towards the French presidential elections clearly the driving factor."
- IG Securities (based on Reuters)
Pair's Outlook
During the early hours of Wednesday's trading session, EUR/JPY tested the downward-sloping channel apparent in the hourly chart, failing to penetrate the bottom channel line at 116.00. This may signal to near-term appreciation, pushing the Euro towards the upper channel limit. However, the pair faces strong resistance along the way, respectively, the weekly S1 and the resistance cluster around 117.20 formed by the weekly and monthly S1s and the 61.8% Fibo. A breakout of the former may confirm that the above-mentioned short-term upward motion is to occur. Technical indicators demonstrate that the current downtrend trend is strong, at least in short term.
Traders' Sentiment
Today's market sentiment remains bullish with 68% of traders holding long positions. In addition, 57% of pending orders are to buy the Euro.
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