EUR/JPY stuck between 139 and 140

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Are things finally starting to get better? My feeling is that they are, that the euro zone has bottomed out and that has implications for the euro." 
- A London international bank senior currency trader (based on Reuters)


Pair's Outlook 
The Euro misbehaved on Thursday, as it suffered a 55-pip loss against the Japanese Yen. The monthly R2 prevented the given cross from falling too deep. From the upside, the weekly R3 is not allowing the pair to edge higher for the second day today, while the Bollinger band is now also providing more resistance to the 140 psychological level. As a result, the single currency might is likely to remain relatively unchanged between 139 and 140. Meanwhile, technical studies keep giving mixed signals in all timeframes. 

Traders' Sentiment 
Market sentiment edged closer to equilibrium, but 52% of all positions remain long. The share of buy commands lost four percentage points. The orders now also take up 52% of the market.
© Dukascopy Bank SA

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