EUR/JPY negates Monday's loss

Source: Dukascopy Bank SA
© Dukascopy Bank SA
© Dukascopy Bank SA
"Even if the market expects a successful conclusion [of the Greek debt situation], it has to price in at least the possibility of a disaster. I expect that possibility to weigh increasingly on the euro until the uncertainty is over."  
- Marshall Gittler, IronFX (based on CNBC)


Pair's Outlook 
Yesterday, the EUR/JPY cross failed to meet expectations. Even though the pair reached the predicted 127.50 level, the ultimate outcome was still positive. The 20-day SMA stopped the rally and forced the Euro to settle at 128.50. Technical indicators retain their bearish signals, suggesting another decline attempt today. The 20-day SMA is to provide strong resistance, as it has done before, and a fall towards 128.00 is the likely outcome on Wednesday. 

Traders' Sentiment 
Market sentiment among SWFX traders slightly improved, as the share of long positions rose from 57 to 59%. At the same time, the percentage of sell commands increased. They now take up 62% of the market (previously 59%).
© Dukascopy Bank SA
© Dukascopy Bank SA

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