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- Morgan Stanley (based on Bloomberg)
Pair's Outlook
The Euro/Yen cross has failed to consolidate above the 147 mark and now it is trading near the weekly PP at 146.56. Nonetheless, there are some indications that the pair is likely to climb back above the level. One of them is the daily and monthly technical indicators that are pointing to the north. However, if the common currency retreats below the weekly PP and later 2013 high, then the major level at 144 becomes the short-term target.
Traders' Sentiment
The SWFX traders are getting less and less convinced that the Euro is going to decline relative to the Japanese Yen; but overall the bears are still in a distinct majority, as they take up 59% of the market, and this is a significant advantage over the bulls (41%).
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