© Dukascopy Bank SA
- Bank of New Zealand (based on Business Recorder)
Pair's Outlook
The Euro plunged more than 200 pips against the Japanese Yen on Thursday, following BoJ Governor's statement. The cross managed to stabilise above the 123.00 mark, showing signs of a possible rebound. However, the bullish momentum might be limited by the strong resistance cluster around the 124.00 psychological level, represented by the Bollinger band, the monthly S1 and the weekly S3. Even though the overall outlook remains bearish, the single currency is expected to eventually put the two-year down-trend to the test. However, technical studies are in favour of the bearish scenario in the monthly timeframe, suggesting that today's rally might be just a mere setback.
Traders' Sentiment
Market sentiment remains bullish at 58% (previously 61%). At the same time, the share of sell orders edged up 1% point, namely up to 64%.
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