- Nomura (based on Bloomberg)
On Wednesday the European single currency edged below the 127.00 major level against the Japanese Yen, as supply at 127.43 proved to be too strong. The same level, namely the monthly S1, keeps providing immediate resistance, while technical studies insist the EUR/JPY currency pair is to continue to weaken. As a result, we should see another slide to the downside, with the nearest demand cluster limiting the dips. A breach of the support is doubtful, as it consists of the 2015 low and the descending channel's lower border around the major level of 126.00.
Bullish traders' sentiment returned to last Thursday's level of 58%. Meanwhile, sell orders take up 61% of the market, 76% previously.