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- Societe Generale (based on FXStreet)
Pair's Outlook
The European single currency continued to misbehave, as it edged higher against the Japanese Yen on Tuesday, therefore, confirming the strong support around 120.40. Even though technical indicators still insist the Euro is to keep weakening, with the recently-acquired bullish momentum the given cross could easily climb to 122.00. However, the EUR/JPY is first required to pierce the supply area circa 121.45, represented by the 20-day SMA and the weekly R1. This could be difficult to achieve, being that the pair was unable to surge above 121.40 through all of the previous week.
Traders' Sentiment
Market sentiment strengthened over the day, with 62% of all open positions now being long (previously 57%). At the same time, the portion of buy orders declined from 54 to 45%.
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