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— Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. (based on Bloomberg)
Pair's Outlook
There were no surprises in the EUR/JPY pair's performance on Tuesday, being that the exchange rate still managed to stabilise between the 55 and the 100-day SMA, despite initially experiencing strong upside volatility. Today Yen's safe-haven status is allowing the Japanese currency to outperform the Euro again, with the monthly pivot point getting violated. As a result, trade could close below the 120.00 major level, which might eventually lead to a retest of the 200-day SMA circa 117.60. Meanwhile, technical indicators keep contradicting with the forecast, as they keep giving bullish signals for the third day in a row.
Traders' Sentiment
Bulls and bears broke out of the equilibrium today, as 55% of traders currently hold long positions. The portion of orders to acquire the European single currency edged higher over the day, from 60 to 63%.
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