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- Yoshihiro Okumura, Chiba-Gin Asset Management Co. (based on Bloomberg)
Pair's Outlook
The Euro's performance against the Yen was rather mild on Friday, as the pair remained relatively unchanged over the day. However, with the return of risk aversion, the Japanese currency pushed the Euro significantly lower today. The weekly PP and the monthly S2 form an immediate support cluster around the 124.00 major level. This area might fail to hold the dips, leaving the weekly S1 to provide sufficient support to limit the losses. Meanwhile, technical indicators are supporting the possibility of the negative outcome, as they are giving distinctly bearish signals in the daily timeframe.
Traders' Sentiment
Although not as strong as on Friday, but market sentiment remains bullish at 57% (previously 59%). At the same time, sell orders increased and are now outnumbering the buy ones by six percentage points.
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