EUR/JPY drops after a bullish rally

Source: Dukascopy Bank SA
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"Still, by October it will be hard for the BOJ to argue inflation will reach 2 percent in or around fiscal 2015. That's when they will be forced to expand stimulus."
 - SMBC Nikko Securities Inc. (based on Bloomberg)

Pair's Outlook
The EUR/JPY struggled to surpass the weekly PP at 137.229 and slid lower, close to the October 2014 low at 135.586. Meanwhile, the RSI continues to link to the pairs' oversold condition. Currently, the pair is trading in a range between the June low at 137.712 and the same October low. Meanwhile, the 100– and 200– day SMA's are neutral, whereas only the 55– day SMA is moving south.

Traders' Sentiment
The sentiment has become more bullish today as 56% out of all traders are holding long positions, supporting the Euro zones' currency. 67% are expecting the pair to appreciate in a 50– pip range, while 100– pip pending orders are set to be long for 64% of the market participants.
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