Dukascopy - Analytics

    Dukascopy

    488.50 6.00/10
    83% of positive reviews
    Real

    EUR/JPY sets eye on 110.00

    © Dukascopy Bank SA
    "There are many factors that are driving risk aversion -- political uncertainty, the global growth outlook and concern about the banking sector, whose profit margins are being hurt by low interest rates." 
    - Credit Agricole SA (based on Bloomberg) 


    Pair's Outlook 
    Risk aversion pushed the EUR/JPY cross lower, boosting demand for the safe-haven Yen yesterday. As a result, the pair dropped below the 113.00 major level, negating most of previous week's gains. With the risk-off sentiment remaining strong in the markets, the Euro is expected to weaken for another day, without the immediate support in face of the weekly S1 limiting the losses. A much stronger cluster is located around 110.25, represented by the weekly S2 and the Bollinger band, with the 110.00 mark also acting as a tough psychological obstacle. Technical studies, on the other hand, retain mixed signals, unable to confirm the outlook.

    Traders' Sentiment 
    Today 55% of traders are long the Euro, compared to 59% previously. At the same time, the share of purchase orders surged from 39 to 58%.
    © Dukascopy Bank SA

    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree