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- Bank of Tokyo-Mitsubishi (based on CNBC)
Pair's Outlook
Despite EUR/JPY breaking the two-month down-trend that connects the Sep 19 and Oct 9 peaks, the pair is still facing strong selling pressure. The immediate support is at 135.80, represented by the recently violated trend-line, monthly S1 and weekly PP. If this supports fails to act as a floor, instead of testing the 55 and 100-day SMAs at 137.70 the European currency will be expected to re-visit this year's low at 134.10.
Traders' Sentiment
Little by little the bulls are building an advantage over the bears. Right now the former take up 56% of the market (53% five days ago). As for the orders, the share of the buy ones has gone up from 57 to 65% within the last 24 hours.
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