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- Georgette Boele, ABN Amro Bank NV (based on Bloomberg)
Pair's Outlook
The Euro appreciated against the Yen yesterday, with gains limited by the 100-day SMA, meaning that the immediate resistance was pierced. However, demand for safe-haven currencies is higher today, thus, the Yen is expected to strengthen today, causing the pair to erase most of yesterday's gains. Losses are likely to be limited by the 117.67 level, namely the ten-week support line. Technical indicators are also in favour of the negative outcome today, as they are giving bearish signals. An upside reaction is doubtful, but possible. From above the 100-day SMA is now also reinforced by a five-week down-trend, which requires an additional confirmation to become fully realised.
Traders' Sentiment
There are 52% of traders being long the Euro today (previously 44%), whereas the share of purchase orders inched up from 49 to 56%.
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