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    EUR/JPY to test the 137.00 area once again

    © Dukascopy Bank SA
    "At the margin, there are small downside risks to the ECB inflation estimates. But at the same time some of the external factors are more supportive medium-term: lower oil prices is good for growth as are potentially lower interest rates and a weaker currency." 
    - Morgan Stanley (based on Reuters)

    Pair's Outlook 
    The European currency declined against the Japanese Yen yesterday, but found support in form of the 136.00 psychological level. The strong cluster around 135.55 keeps providing substantial support, while the group of significant levels around 137.00 are to limit the gains. Although a rebound is expected to take place today, the weekly R1 at 136.70 could still prevent the EUR/JPY cross from edging higher. Technical studies are now giving bullish signals, suggesting the Euro is to climb against the Yen by day's end. 

    Traders' Sentiment 
    Market sentiment is barely bullish, as 51% of traders are now long the Euro (previously 52%). The number of purchase orders also declined, from 65 to 61%.
    © Dukascopy Bank SA

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