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- Millenium Global (based on CNBC)
Pair's Outlook
Although the EUR/JPY's volatility stretched out towards the weekly R2 at 124.49, the pair still stabilised in front of the weekly S1 at 124.00, fuelled by the return of risk appetite. The monthly S1 is now the closest resistance level, which from the technical point of view should cause the given cross to bounce back and put the weekly R1 at 123.59 to the test. On the other hand, if the Euro retains its strength, then the pair will have the potential to retake the 124.50 mark, unless supply in face of the weekly R2 there is sufficient to spark another sell-off. Technical indicators are no longer giving distinctly bearish signals, but to some extent continue to be in favour of a bearish outcome.
Traders' Sentiment
Same as on Tuesday, bulls still take up 59% of the market, whereas the portion purchase orders increased from 53 to 58%.
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