EUR/JPY takes another shot at 55-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"If the Fed is not as dovish as people think, then assume U.S. yields rise and drag up European equivalents, which would imply a tightening of financial conditions and would be unpleasant for the ECB." 
- ING (based on CNBC) 

Pair's Outlook 
On Tuesday the EUR/JPY remained relatively unchanged for a third time in a row, as the immediate resistance cluster pushed the pair down. All this time the pair was gravitating towards the 133.00 major level, but is now ready to leave this trading area. Technical studies point to a rally, but the 55-day SMA and the weekly PP keep providing resistance around 133.20. Nevertheless, a surge towards the 200-day SMA at 134.17 is possible, while the cross also remains under the risk of falling more than 100 pips lower, despite all supports located in between. 

Traders' Sentiment  
Today 57% of traders are short the Euro (previously 55%). At the same time, the share of purchase orders declined from 46 to 41%.
© Dukascopy Bank SA

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