EUR/JPY hovering above 129 JPY

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"There is also strong demand for sovereign bonds of countries like Spain and Italy, and that could also support the euro." 
- Brown Brothers Harriman (based on Reuters)

Pair's Outlook
A bit unexpectedly yesterday pair found support at the weekly and monthly pivots around 128.5 and has been fluctuating between 129 and 130 JPY today.  It is showing mild bullish signs, but short term technicals do not provide any additional conclusive reading, market sentiment did not show any significant chances. This continues to show that pair still faces significant downside risk.

Traders' Sentiment
Market sentiment remains close to neutrality as distribution of outstanding positions remains at 53% versus 47% between the bears and the bulls respectively for the second day now. Bulls, however, hold marginal upper hand in the distribution of pending orders (56%) which might be enough to rouse the market sentiment.

© Dukascopy Bank SA

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