© Dukascopy Bank SA
- Rabobank International (based on Bloomberg)
Pair's Outlook
The Euro advanced for two straight days; although, at the moment, it seems that the pair is having a short term correction around the monthly PP and weekly R1 at 138.84/91. We expect the 18-nation currency to regain its recent bullish momentum and to approach the 2008 high at 138.24. However, to our mind that level should not offer very substantial resistance; therefore, the next significant resistance level is the 55-day SMA and weekly R2 at 139.36/42.
Traders' Sentiment
The traders' sentiment with respect to EUR/JPY is bearish, since as many as 74% of open positions are short. In the meantime, the relative number of sell orders is growing—100-pips from the spot price their share increased from 39% to 47%.
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