- ING (based on Reuters)
The European currency managed to appreciate against the Yen yesterday, but the 200-day SMA limited the gains and pushed the pair back to 136.42. With the strong cluster around 136.90 still providing substantial resistance, downside movement would not be a surprise, especially if technical indicators are bolstering the negative bias. However, good fundamental data is likely to have an opposite effect and boost the Euro. As a result, trade should remain flat and within the borders of the weekly PP and 55-day SMA.
Bearish market sentiment returned to its Wednesday's level of 53% (previously 55%). At the same time, the number of sell orders added six percentage points. The orders now take up 80% of the market.