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- Masashi Murata, BBH (based on CNBC)
Pair's Outlook
On Wednesday, the Euro did edge higher towards the 200-day SMA, but was immediately pushed back upon reaching it. As a result, the EUR/JPY cross ended the day with a slight 23-pip decline, just under the weekly PP. Due to the single currency being unable to cross the 200-SMA since the beginning of the week, the Euro is expected to edge lower again today. Although the nearest support is located around the 134.00 major level, represented by the weekly S1 and 100-day SMA, trade is likely to close around the 135.00 mark.
Traders' Sentiment
Both net positions and net orders improved today. Traders' sentiment reached a perfect equilibrium, whereas there are now 48% of orders to purchase the Euro, compared to 42% yesterday.
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