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- IronFX Global (based on Reuters)
Pair's Outlook
As was anticipated, the European currency slumped against the Japanese Yen on Tuesday, with volatility stretching out to the target level, namely the monthly S3 at 118.48. The pair, however, still closed above the Fed 2013 low of 118.76, as demand at that area remains strong. As a result, the Euro might undergo a corrective rally today, but gains are unlikely to extend beyond the immediate resistance, represented by the Bollinger band and the weekly S1, located around 119.25. Meanwhile, technical indicators keep giving mixed signals in the daily timeframe, unable to confirm the possible direction.
Traders' Sentiment
Market sentiment returned to its Monday's level, with bulls taking up 57% of the market. The share of purchase orders, on the other hand, slid from 59 to 53%.
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