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    EUR/JPY on the steady downslide

    © Dukascopy Bank SA
    "ECB's QE continues to take a toll on the euro. Euro zone bond yields were thought to have mostly priced in the QE launch beforehand, but the magnitude of their decline has shown that such expectations were premature."
    - Shinchiro Kadota, Barclays (based on Reuters)


    Pair's Outlook 
    EUR/JPY plunged last Friday, topping previous day's gains. The weekly S2 failed to provide the needed support and, as a result, the single currency fell deeper, towards the monthly S3. In th end the exchange rate closed the week at 127.36. Today we may expect a correction, but the gains are likely to be limited, as the technical indicators are emitting mixed signals on the daily time-frame. The nearest resistance level is now represented by the monthly S3 at 127.42. 

    Traders' Sentiment 
    There are still more bulls than bears among SWFX market participants, as 55% of all positions are long. Meanwhile, the Euro is being bought in only 28% of all cases and sold in 72% of all cases.
    © Dukascopy Bank SA

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