- Nordea (based on Business Recorder)
Poor Chinese fundamental data sparked demand for safe haven assets, such as the Japanese Yen, which resulted in the given pair's 92-pip drop yesterday. Although the EUR/JPY cross managed to remain above the 124.00 level, retained weakness from Tuesday is likely to push the pair even lower today. The nearest support, namely the weekly S1 at 122.99, is expected to keep the European currency from posting too much losses against the Yen. Meanwhile, technical indicators are also giving bearish signals, suggesting the bearish momentum is to prevail over the day.
There are significantly more traders with a bullish outlook towards the Euro today, namely 61%, compared to 44% yesterday. All pending orders are equally divided between the buy and the sell ones.