EUR/JPY fluctuates around 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Markets sold off everywhere, not only in Italy. It's not a sign that there is a particular weakness in the BTP market, it's a sign that global debt markets sold off over the last couple of weeks." 
- BNP Paribas (based on Reuters)


Pair's Outlook

The pair is traded around the 20-day SMA at 131.70, which stands for the middle point of the Bollinger band. The situation indicates that the market participants are rather reasonable about the future price and wait for further gradual appreciation. The closest resistance level is at 132.86, where the upper Bollinger band is currently located.

Traders' Sentiment
The sell side contracted by another 2% and reached a 52% share, pushing the market even closer to an equilibrium. Seems that investors lost their interest in pairs that are not directly related to the U.S. Dollar. Pending orders segment is in balance, as both sides have the same shares of orders.
© Dukascopy Bank SA

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