EUR/JPY posses for further rally

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Hopes for some degree of policy continuity might have to lie more with the center-left Democratic Party of Pier Luigi Bersani, who has indicated a willingness to consider the range of policy proposals that Monti has committed to publish shortly." 
- Daiwa Capital (based on MarketWatch)

Pair's Outlook
After a dim start of the week the pair picked up the pace and seems to be charging it self for one more attempt to advance above 112.5. Signals from technical indicators suggest this attempt should be successful, however, the RSI and the Stochastic give indications of a somewhat "bumpy ride" suggesting that for some time before advancing pair might be range bound.

Traders' Sentiment
Traders are starting to loose bearish attitude towards the pair as distribution between bears and bulls in the market hovers towards equilibrium—at the moment 55% of traders hold short positions on the pair. It seems that such trend will continue further as clear majority of pending orders (67%) are to go long.

© Dukascopy Bank SA

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