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- IHHS Economics (based on WBP Online)
Pair's Outlook
The EUR/JPY cross experienced more weakness on Tuesday, edging closer to the weekly S1 at 131.28. Nevertheless, technical indicators are giving bearish signals again today, increasing the possibility of the Euro to prolong the decline. The resistance in face of the weekly PP is likely to hold gains if those occur, as it managed to do so previously; whereas dips are unlikely to be limited by the immediate support, namely the weekly S1. However, the weekly S1 is now a part of a stronger cluster, the lowest level of which (the weekly S2 at 130.74) should prevent the single currency from falling deeper.
Traders' Sentiment
Market sentiment remains in perfect equilibrium for the second day, whereas the number of sell orders declined from 85 to 62%.
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