Yen strengthens against the Euro due to anxiety over China's economy

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"It (the euro) has certainly been behaving with safe haven qualities. The market has been cutting these massive euro shorts that they built up from July of last year and all the way into March. And those shorts are around about half of the size they were in March." 
- Rabobank (based on CNBC)


Pair's Outlook
Upon reaching the monthly R1 on Friday, the Euro managed to regain the bullish momentum and outperform the Japanese Yen. However, the nearest resistance was not reached, as the pair struggled to pierce the 139.00 major level. Technical indicators keep giving bullish signals, whereas the single currency is expected to weaken today. Immediate support lies around 138.15, represented by the weekly PP and monthly R1, but risks being breached, as the exchange rate could fall to the 138.00 major level. 

Traders' Sentiment 
Long and short position ratio is now equal to one. The number of purchase orders, on the other hand, dropped from 31 percentage points. The commands now take up only 52% of the market.
© Dukascopy Bank SA

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