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- Commerzbank (based on FXStreet)
Pair's Outlook
The Euro refuses to drop below the 122.50 level for two weeks straight now, as it recovered from its intraday low against the Yen once again yesterday and closed with a seven-pip loss. The EUR/JPY cross opened in between the weekly S1 and the 20-day SMA today, still anchored to the 123.00 major level. However, since the European single currency has been declining for more than four weeks now, today's outlook is also bearish. A small bearish development is likely to take place, but with the weekly S1 at 122.78 doubtfully holding the losses. This leaves the Euro vulnerable to falling back towards the 122.50 and possibly even lower towards the weekly S2 and the Bollinger band circa 121.95.
Traders' Sentiment
Bulls are now outnumbering the bears by only 2% points, while the number of orders to purchase the Euro increased from 58 to 67%.
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