- Credit Agricole (based on Reuters)
On Tuesday the Euro appreciated against the Yen, with trade closing at 128.30, after having tested the second resistance cluster. Today the risk-off sentiment returned, boosting the Japanese currency due to its safe-haven status and pushing the given cross towards the support cluster around the down-trend. Meanwhile, technical indicators shifted from distinctly bearish to bearish signs, but still implying the bearish scenario is to prevail. The Euro lacks the strength to fully recover from today's slump, with trade expected to close between the first and the second support areas.
Market sentiment is equally divided between bulls and bears. At the same time, the portion of sell commands increased from 63 to 80%.