- CIBC World Markets (based on CNBC)
The European currency was able to partially recover from intraday losses yesterday, after it dropped as low as 127.00 against the JPY. Although demand for the safe haven Yen remains relatively high due to the Yen devaluation, rather strong euro region fundamental data earlier today nullified that effect, causing the cross to return to the opening price. The cluster in face of the weekly S3 and the Bollinger band around 127.85 is now providing resistance, while the trend-line at 127.41 should limit the dips, but a fall towards 126.78, where the monthly S2 rests, is also possible, as technical studies suggest.
Market sentiment is equally divided between bulls and bears, whereas the number of sell orders remains unchanged at 55%.