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- Mizuho Securities (based on Reuters)
Pair's Outlook
Once again the Euro weakened against the Japanese Yen yesterday, being driven mostly by the risk-off sentiment. The weekly S2 managed to limit the losses for the second time, giving strong signals that a rebound is possible today. Bolstered by the lower Bollinger band, the weekly S2 is likely to prevent the EUR/JPY cross from experiencing another leg down. However, gains are expected to be limited by the 120.30 mark, the point where the monthly S1 is located at. Lack of impetus is also playing its part, making it difficult for the Euro to post gains, while technical indicators keep giving mixed signals everywhere.
Traders' Sentiment
There are 55% of traders being long the Euro today, just one percentage point higher compared to Wednesday. At the same time, the portion of buy orders declined from 57 to 45%.
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