Dukascopy - Analytics


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    EUR/JPY marches towards 126.00

    © Dukascopy Bank SA
    "In the short term, it [the government] may slow down the yen's weakness against the dollar, but against the euro, we expect it to strengthen." 
    - Nomura (based on CNBC)

    Pair's Outlook 
    On Monday, the Euro extended its decline, after closing the previous week in red. The EUR/JPY cross fell slightly more than predicted, as the 127.00 level failed to provide enough support. However, 126.90, namely the March 2015 low, had sufficient strength to prevent a deeper fall. As for Tuesday, the technical studies are mixed, and the pair is expected to plunge again due to relatively strong Yen. The lower Bollinger band acts as immediate support, while the weekly S1 at 126.02 is a more reliable level. 

    Traders' Sentiment 
    Market sentiment improved, as the number of long positions went up from 56 to 58%. The portion of buy orders also increased, with 38% of commands set to purchase the Euro (previously 31%).
    © Dukascopy Bank SA

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