- Tokyo Forex & Ueda Harlow (based on Market Watch)
The Euro weakened against the Yen on Tuesday, as the demand for safe-haven assets increased. However, the single currency closed above the 127.00 major level, indicating a possibility of the bullish momentum being regained today. The monthly S1 once again took the role of the closest resistance and could limit the rally if bulls manage to push the EUR/JPY cross above the opening price. The overall trend remains bearish and we should eventually see a more solid retest of the descending channel's support between 125.50 and 126.00, as weekly and monthly technical studies suggest.
Confidence in the Euro dropped significantly, as 61% of traders now hold short positions, compared to 55% on Tuesday.