Despite Monday’s solid gains, Tuesday’s forecast was a negative one. This was due to demand stalling at the crucial 13 day mvg avg and this proved correct. But price action was volatile and, despite a negative bias, net movement was minor. This kept EURJPY fluctuating around the 13 day line and does not provide strong signals for sentiment going into Wednesday. Nonetheless, demand has been seen in Asia and with this likely to impact on this morning’s sentiment.
We look to Buy in 128.55/60 area and on any 128.35 dip
The stop is 128.05 offered
Targets - 128.85 and 129.10
Closes 4pm London time