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– Credit Agricole (based on Reuters)
Pair's Outlook
The Yen managed to outperform the European single currency for the fifth consecutive day on Wednesday, being driven by a spark of risk-off sentiment. As a result, the pair stabilised just under the immediate support, namely the weekly S1, but attempted to erase most of the last five-day losses. However, the Euro's endeavors were quickly nullified by the dovish outcome of today's ECB conference. The cross negated all intraday gains, returning to its opening level, around which it is expected to trade by the end of the day, with risks skewed to the downside.
Traders' Sentiment
Market sentiment slightly improved over the day, as 62% of all open positions are currently long (previously 59%). Meanwhile, the portion of orders to sell the Euro edged down from 62 to 54%.
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