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    EUR/JPY takes another step towards the down-trend

    © Dukascopy Bank SA
    "We expect no action and dovish rhetoric [from the ECB meeting], mainly intended to stem the euro appreciating trend." 
    - UniCredit Research (based on CNBC)


    Pair's Outlook 
    The EUR/JPY recovered after Monday's fall, breaching the immediate resistance, but remaining below 136.00. The pair edged closer to the triangle's upper boarder, with only the 100-day SMA now blocking the way to the cluster around 136.75. Even though the Euro is rising against the Yen, weekly and monthly technical indicators remain bearish, suggesting that a breakout through the downside is possible, the impetus for which the ECB meeting tomorrow could provide. The base case scenario for Monday, however, is a rally towards the medium-term SMA (100-day one). 

    Traders' Sentiment 
    The outlook towards the Euro improved, as 52% of all positions are now long. The portion of buy orders, however, slid from 61 to 49%.
    © Dukascopy Bank SA

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