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    EUR/JPY takes another step towards the channel's support

    © Dukascopy Bank SA
    "Historically, JPY appreciation from extreme undervaluation, especially amid risk aversion, has been rapid and large. We expect this appreciation to be the same." 
    - Barclays (based on Market Watch) 


    Pair's Outlook 
    After having tested the support line near the 2015 low, the EUR/JPY cross negated most of its intraday losses and closed trade just below the immediate support cluster. The pair remains subject to weakness, and is likely to end the day in the red zone, as the monthly S1 and the weekly S3 provide resistance quite close to the opening price. The closest support cluster, which includes a support trend-line, is to hold the losses if the exchange rate drops down to around 126.00. Technical studies are mostly in favour of the bearish scenario, suggesting the channel's lower border might be retested. 

    Traders' Sentiment 
    Bulls keep dominating the market, as 56% of all open positions are long. The number of orders to buy the Euro slid from 71 to 44%.
    © Dukascopy Bank SA

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