EUR/JPY hovering above 55-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Investors are cautious about the euro before the ECB meeting tomorrow and there is always the risk that euro zone GDP could be revised downwards today and feed into fears that Draghi may strike a dovish stance." 
- CIBC World Markets (based on Reuters) 

Pair's Outlook
For the fourth consecutive day pair is trading in rather narrow, 100 pip wide, range between 121.15 and 122.15 staying between weekly PP  and 55-day SMA. Technical indicators suggest that convergence of these two technical levels should ignite a major  plunge, most likely to 119 JPY area which should be followed by the recovery back to 123 JPY, level anticipated by major market participants.

Traders' Sentiment
Bears continue to hold relative upper hand in the market as their share in the market remains at 52%. Regarding the pending orders, bulls have backed out a bit as they are responsible for 54%, in comparison to 59%, of all pending orders.

© Dukascopy Bank SA

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