- Bank of Tokyo-Mitsubishi (based on WBP Online)
The Euro suffered a massive 220-pip loss against the Yen on Wednesday, as demand for safe-haven assets increased. Even though the pair now faces a support cluster in face of the weekly S3 and the monthly S1 at 127.50, the risk-off sentiment is bound to drive the EUR/JPY even lower. The second target is represented by the 2015 low and the recently formed descending channel's support line around 126.05, but we might even see a breach and, thus, a slump towards the 125.00 psychological level. Meanwhile, technical studies insist the given cross is to rally at least towards 128.82.
Bullish market sentiment returned to its Tuesday's level of 58%, while the portion of purchase orders increase again, from 53 to 71%.