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– Commerzbank (based on FXStreet)
Pair's Outlook
The EUR/JPY currency pair behaved in accordance with expectations yesterday, as it climbed over the weekly PP and the 20-day SMA resistance area. Despite this rally, the Euro is unlikely to post more significant gains, as there is a tough resistance cluster just above the 114.00 major level, formed by the Bollinger band, the weekly R1, the 38.20% Fibo and the monthly PP. A strong bearish development is also doubtful, as the cross was unable to stabilise below the 113.00 mark for three weeks now, with the weekly S1, the 23.60% Fibo and the Bollinger band now also providing additional support circa 112.60. The base case scenario is a close around 113.25.
Traders' Sentiment
Bullish traders' sentiment returned to its Monday's level of 64% (previously 66%). The share of buy orders inched up from 46 to 60%.
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