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- Nick D'Onofrio, North Asset Management (based on Reuters)
Pair's Outlook
The European single currency behaved in accordance with expectations yesterday, as it breached the immediate demand area and made its way to the second one, where support was found. The support cluster around 122.00 is relatively strong and is likely to be sufficient to cause the EUR/JPY cross to rebound. At the same time, the 20-day SMA and the weekly PP, which form immediate resistance today, are unlikely to limit the possible gains, as they have been failing since the beginning of the week. Nevertheless, the pair remains in its consolidation trend, thus, a significant rally beyond 123.00 is unlikely.
Traders' Sentiment
Today 55% of traders are long the Euro, in comparison to 53% on Thursday. At the same time, only 47% of all pending orders are to acquire the single current, down from 59% yesterday.
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