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- Mizuho Financial Group Inc. (based on The Business Times)
Pair's Outlook
The EUR/JPY cross underwent the anticipated correction on Monday, but managed to avoid serious losses. The pair still faces a tough demand area around 120.00, which failed as a resistance, but could succeed as a support. However, a relatively strong resistance, namely the 55-day SMA, the upper Bollinger band and the monthly R1, is also located above the current spot price. The Euro is likely to maintain trade within the borders of these clusters today and, possibly, even through all of the week. Technical studies also somewhat confirm this outlook, as they are giving mixed signals in the daily timeframe.
Traders' Sentiment
Market sentiment turned bearish over the day, as now 53% of all open positions are short (previously 49%). The portion of purchase orders, on the other hand, edged up from 56 to 57 in the last 24 hours.
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