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– Royal Bank of Scotland Group Plc. (based on Bloomberg)
Pair's Outlook
As was anticipated, the Euro weakened against the Japanese Yen for another day yesterday, putting the immediate support cluster to the test. Earlier today the BoJ's announcement caused the pair to erase all intraday losses, setting a trading range mainly between 112.54, namely the 23.60% Fibo, and the 114.40 level, where the monthly R1 coincides with the 38.20% Fibo. Despite the initial bullish reaction, the pair appears to be unable to maintain trade above 114.00, with bears already taking profit from this rally. As a result, the cross could close trade deep in the red zone, but the bottom floor around 112.55 is still expected to hold.
Traders' Sentiment
Bulls still take up 68% of the market, unchanged since yesterday, while 62% of all pending orders are to buy the Euro (up from 57%).
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