"The initial estimate of Q1 Japanese GDP growth will be released early Thursday and will be the most important economic release of the morning session."
— Rhys Herbert, Lloyds Bank (based on FX Street)
Pair's outlook
Today, EUR/JPY met strong resistance at 125.38, setting the pair for a decrease towards the weekly R1 at 124.67. It was stranded within the bounds of the given levels on Tuesday, suggesting that the same situation might repeat in this trading session, as well. Considering the strong momentum downwards, a close circa 124.67 is expected. Today's reversal was supposedly driven by the pair being overbought; thus, it might remain its movement north in the following trading days. However, this week may likewise provide the second upside confirmation of a widening wedge pattern in which the pair is currently trading. This indication is in turn bearish in the longer term.
Traders' sentiment
Market sentiment remains bearish, as 56% of traders are holding short positions. Meanwhile, 53% of set up orders are to buy the Euro.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | -12% | -22% | -16% | |
| Orders | 6% | -6% | -4% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Buy | Buy | Sell | |
| RSI (14) | Sell | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Buy | Sell | Sell | |
| ADX (14) | Buy | Neutral | Neutral | |
| CCI (14) | Sell | Sell | Neutral | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Buy | Buy | Sell | |
| SAR (0.02; 0.2) | Buy | Buy | Buy | |
| Aggregate | ↗ | ↗ | → | |