EUR/JPY short-term climb

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"There is a conviction that it will be foreigners who are going to sell bonds to the ECB rather than euro zone investors, and that should have a negative effect on the euro."
- Rabobank (based on CNBC)


Pair's Outlook 
After a rather sharp decline the Euro managed to regain some ground, but was unable to breach the weekly S1 at 133.86. Although the gains were insignificant, they might be erased already this Monday. Technical studies suggest the Euro will appreciate against the Yen in the short run; however, a strong resistance cluster around 134.30 is on the way. Longer time frames indicate a plunge in the EUR/JPY cross, as the weekly technical arrow is pointing directly south. 

Traders' Sentiment 
The share of bulls and bears is close to equilibrium today, and only a slight majority of traders (51%) has a negative outlook toward the Euro. At the same time, the number of buy orders slid down to 36%.
© Dukascopy Bank SA

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