EUR/JPY dips to 55-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"After that record-breaking leap, there was a small drop of 0.4 points in October and that should be interpreted as stabilisation at a level that is now healthy again. That means annual gross domestic product (GDP) growth in the euro zone probably normalised in the current quarter because if the overall index has a value of zero, it means that optimism and pessimism about the economy are in balance."
- Sentix (based on RTE News)

Pair's Outlook
Pair maintains the bearish trend and once again dipped to 131.4. At the moment it is supported by the 55-day SMA. Bearishness we have seen for the past 3 weeks should persist. Once the pair dips below the 55-day SMA, we should look at 100-day SMA which could cause a reversal as suggested by the medium and long term technicals. In case the 55-day SMA prevails the pair should advance above the 132.3 in order to uplift the downside pressure from the pair. 

Traders' Sentiment
Bulls have retreated from the market a bit during the weekend. At the moment they account for 53% of market participants. That is 3% less than on Friday. In addition to this, bullish side of pending orders is at 58% gauge which is 7% less than on Friday.

© Dukascopy Bank SA

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