- Nordea (based on Reuters)
The EUR/JPY cross experienced rather serious volatility in the beginning of the week and ended the day with a 50-pip loss. With risk-off sentiment being also dominant today, the given pair is expected to suffer another decline, with the main obstacle around the 129.00 level remaining. This sell-off is likely to continue until the exchange rate reaches the second support cluster, namely the weekly S3 and the monthly S1 around 127.50, but even then volatility could extend towards the 2015 low of 126.08. Both weekly and monthly technical studies are in favour of the bearish scenario.
Today 58% of traders hold long positions (previously 53%), while 70% of all pending orders are to sell the Euro (previously 83%).