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- Nomura (based on Reuters)
Pair's Outlook
The Euro's rebound appears to have been short-lived, as momentum has been fading ever since the EUR/JPY put the monthly S1 to the test. As a result, the single currency is expected to edge lower again today, with the risk of closing under the 123.00 major level higher. The closest demand area is located around 122.17, represented by the Bollinger band, but a fall that deep is unlikely to occur today. Meanwhile, technical indicators are bolstering the possibility of the negative outcome, as signals in all timeframes are bearish. Nonetheless, the given cross is ultimately expected to rise back up towards the 127.50 level, namely where the two-year down-trend rests.
Traders' Sentiment
Traders' sentiment remains unchanged, with bulls still outnumbering the bears by 2% points. Buy and sell orders are in a perfect equilibrium.
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