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    EUR/JPY poised for more weakness

    © Dukascopy Bank SA
    "The yen is deriving more support as well from the sharp improvement in Japan's current account surplus. The latest trade report revealed overnight that Japan recorded a second consecutive monthly surplus (seasonally adjusted) in December for the first time since early in 2011." 
    - Bank of Tokyo-Mitsubishi (based on WBP Online) 


    Pair's Outlook 
    Even though the European currency failed at reaching the immediate resistance on Friday, the EUR/JPY pair still ended the day with a 21-pip rally. Neither the key support nor the resistance are broken, suggesting the Euro is likely to resume trade within its current consolidation trend. However, the cross had only tested the down-trend near the 2015 low; and we expect price to close near to that area in the future, and eventually rebound towards the resistance line around the major level of 131.00. 

    Traders' Sentiment  
    Today 53% of traders are long the Euro, compared to 54% on Friday. Meanwhile, the portion of orders to purchase the single currency added four percentage points, up to a total of 52%.
    © Dukascopy Bank SA

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