- AvaTrade
Pair's Outlook
Having breached the falling wedge's support line on Friday, the EUR/JPY cross got exposed to more weakness. Another sign supporting this outlook is the descending channel pattern within the wedge, where the given pair maintained trade for the past five months. The Euro has the opportunity to stabilise in the green zone, but these gains are unlikely to last, with the channel's upper border causing an eventual slump under 115.00. However, technical indicators are unable to confirm this scenario, as they keep giving mixed signals in all timeframes. The base case scenario today is a close around 115.30.
Traders' Sentiment
The Euro is somewhat overbought now, as 72% of all open positions are long (previously 68%). At the same time, the share of purchase orders edged down from 67 to 61%.
© Dukascopy Bank SA