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"Revision is unlikely to be enough to trigger further near-term monetary easing. This will also require a deterioration of activity and/or a further significant strengthening of the euro.''
- ING Bank (based on The Irish Times)
Pair's Outlook
Pair bounced off the 55-day SMA on Friday after a major sell off last week and continued to climb up higher today after opening at 141 JPY yesterday. We expect it to climb till monthly R1, take a step back and consolidate around 142JPy after wards. After the recent events we see other bearish action highly unlikely, but a dip below 55-day SMA could provoke a major sell off till 139 JPY. Peak above weekly R1 could igniter the bulls to test recent (March) high.
Traders' Sentiment
Long side of open positions is deteriorating further. Today is at 52%, 1% less than on Friday. Bullish side of pending orders increased by 29%, till 58%, at 50 pip range, but contracted by 19%, till 44%, at 100 pip range around the current market price.
© Dukascopy Bank SA