© Dukascopy Bank SA
- Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
After yesterday's drop the pair has little changed and it is trading above June high at 137.71 today. It seems that the Euro has reliable support levels (monthly S1 and weekly S2) around 137.59/55 and to our mind that should be enough to avert its further decline. The longer term technical levels are bullish; therefore, that together with previously mentioned support levels could push the 18-nation currency higher against the Yen.
Traders' Sentiment
Current decline is apparently discouraging some of the traders; as compared to the yesterday's readings, the share of long positions fell from 59% to 47%. At the same time the gap between the buy (49%) and sell (51%) orders is narrowing.
© Dukascopy Bank SA