© Dukascopy Bank SA
– Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
Even though the European currency weakened against the Yen on Tuesday, the nearest support still managed to limit the losses. The 23.60% Fibo, the weekly S1 and the Bollinger band keep providing immediate support around 112.30, which is likely to cause the pair to rebound today, despite technical indicators retaining bearish signals. However, a breach of the nearest resistance, represented by the weekly PP and the monthly S1 around 113.33, is also doubtful, but possible. In this case the given cross could reach 113.60—the level, which kept the pair at bay for a whole week.
Traders' Sentiment
Bulls lost some number over the day, as there are now 63% of traders holding long positions, compared to 68% on Tuesday. Meanwhile, the share of buy orders slid from 58 to 53%.
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