Dukascopy - Analytics

Dukascopy

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83% of positive reviews
Real

EUR/JPY stuck between 127.25 and 128.55

© Dukascopy Bank SA
"The yen is the pre-eminent risk-adverse currency, and the euro is not far behind, Both are places where capital is exported to invest in attractive opportunities around the world. When things go badly wrong, that's when it comes back." 
- Societe Generale (based on Business Recorder)


Pair's Outlook
The European currency was unable to climb over the monthly S1 on Friday, which resulted in a retreat closer to the 128.00 level. This week the monthly S1 is bolstered by the weekly PP, making it more difficult for the EUR/JPY cross to breach. Technical studies also retain bearish signals, suggesting a decline is to take place; however, a 50-pip space for appreciation remains between Monday's opening price and the immediate resistance cluster. Meanwhile, dips are to be limited by the support line, with a possibility of volatility stretching out to the Apr 2015 low of 126.08. 

Traders' Sentiment  
Bulls are now outnumbering the bears by 2% points. Meanwhile, there are 58% of orders to acquire the Euro (previously 59%).
© Dukascopy Bank SA


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