"Amid underlying risk-off theme in Europe, the shared currency received an additional boost from Merkel comments, citing euro is ‘too weak' and hence, makes German products cheaper."
— Dhwani Mehta (based on FX Street)
Pair's outlook
Upside risks have prevailed in this trading session and, in particular, mid-day when EUR/JPY accelerated its momentum upwards. The European common currency opened at the weekly PP and has since continued to trade higher towards the closest resistance cluster formed by the upper Bollinger band and a wedge boundary at 126.07. It is likely that bulls prevail in this session, closing near the 125.00/30 mark. Technical indicators remain bullish on the pair, suggesting that the Euro may still trade higher this week up to the previously-mentioned 126.07 level.
Traders' sentiment
Traders have increased their bearish sentiment today, as 57% of open positions are short. Meanwhile, 53% of set up orders are to buy the Euro.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | -14% | -2% | -28% | |
| Orders | 6% | 16% | 12% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Buy | Buy | Sell | |
| RSI (14) | Neutral | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Sell | Sell | Sell | |
| ADX (14) | Buy | Neutral | Neutral | |
| CCI (14) | Neutral | Sell | Neutral | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Buy | Buy | Sell | |
| SAR (0.02; 0.2) | Buy | Buy | Buy | |
| Aggregate | ↗ | ↗ | → | |