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- Saxo Bank (based on Reuters)
Pair's Outlook
The EUR/JPY cross appears to have entered a period of consolidation, as there is no clear sign of a short-term bullish trend just yet. The pair is gravitating towards the 117.00 major level, located in the middle between two borders, where the Euro is expected to remain by week's end. From below the monthly PP is providing immediate support, and another cluster located slightly lower, namely the weekly PP and the 20-day SMA circa 115.00. At the same time, a tough resistance area around 119.25, represented by the weekly R1, the 55-day SMA and the Bollinger band, is to keep the European currency at bay, preventing it from reaching the down-trend at 120.50.
Traders' Sentiment
For the sixth consecutive day bullish market sentiment weakened from 57 to 53%, whereas the share of sell orders edged up from 59 to 63%.
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