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- Royal Bank of Scotland Group Plc. (based on Bloomberg)
Pair's Outlook
The European single currency weakened against the Japanese Yen on Tuesday, with losses falling in line with expectations. Even though the lower boundary of the pair's consolidation trend is represented by the 121.50 mark, the monthly PP appears to be keeping the given cross above the 122.00 major level. Consequently, the Euro is now almost certainly expected to rebound and strengthen against the Yen. Technical studies also retain bullish signals, bolstering the possibility of the positive outcome. The 123.50 level is the highest the pair is expected to reach, but a surge beyond 123.00 is unlikely, with the weekly PP and the 20-day SMA forming resistance there.
Traders' Sentiment
Market sentiment turned significantly bearish, as nearly three quarters (74%) of all open positions are now short (previously 52%).
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