- Brown Brothers Harriman (based on Reuters)
The European single currency appreciated against the Japanese Yen, meeting resistance near the 127.00 major level in face of the weekly R1 and the 55-day SMA. This area is now supporting the EUR/JPY cross from below, a breach of which is to lead to a decline towards the ascending channel's lower border at 126.17. Meanwhile, the nearest resistance is located around 127.60, represented by the weekly R2 and the Bollinger band, in case bulls take over the market. However, technical indicators shifted from bullish signals to mixed, suggesting that the bearish outcome is more probable.
The SWFX sentiment keeps weakening, as bulls are now outnumbering the bears by only two percentage points. The percentage of sell orders now takes up 65% of the market, compared to 51% previously.