- Bank of New York Mellon (based on CNBC)
The Euro gained 37 pips against the Yen on Wednesday, but failed to settled above the 139 psychological level. The single currency is likely to experience weakness today, but with the strong support cluster around 138.10 still limiting the losses. We believe the given cross is not yet ready to break out of the ascending channel to the downside, even though the pair reached a daily low of 137.66 today. Technical indicators are now showing bearish signs, also suggesting the EUR/JPY is to slide down by the end of the day.
Bearish SWFX traders' sentiment remains unchanged at 53%. The number of purchase orders, however, gained 39 percentage points. The commands now take up 64% of the market.