EUR/JPY slumps again

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The outlook has brightened for all countries. The weaker euro should help boost exports and, perhaps most importantly, the commencement of quantitative easing by the ECB should stimulate the economy as we move through the year." 
- Markit (based on CNBC)


Pair's Outlook 
The pair erased Monday's gains and edged slightly lower. The EUR/JPY cross stumbled down to 133.80 after encountering a cluster of resistances around 134.32, thus the support level at 133.20 was left untouched. Judging by the weekly technical indicators, the single currency will most likely extend the losses, while the nearest significant support remains around the lower Bollinger band and weekly S1.

Traders' Sentiment
Bullish sentiment currently prevails in the market, as 55% of traders have an optimistic outlook towards the Euro and hold long positions. Moreover, the buy/sell ratio increased again, as the percentage of commands to purchase the Euro went up from 39% to 45%.
© Dukascopy Bank SA

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