EUR/JPY double dips below 131

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The answer to the crisis has not been less Europe but more Europe. We can ... safely say that our Economic and Monetary Union (EMU) is a more stable union today than it was a year ago."
- Mario Draghi (based on Reuters)

Pair's Outlook
For the second day in a row pair has dipped below 131 JPY. Yesterday it managed to dip all the way to 130, but rushed back to almost opening level after it received a bullish impetus  from weekly S2. Today pair has already breached weekly PP and S1 and 20-day SMA. Technical indicators, however, suggest that yesterdays scenario should repeat itself and pair should counter some of its losses.   

Traders' Sentiment
Bulls strengthened their presence in the market, however the move was rather insignificant leaving bears, who hold 65% of outstanding positions, to dominate in the market. Pending orders have not moved a bit—59% of them remain to go long on the pair.

© Dukascopy Bank SA

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