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- Deutsche Bank (based on Reuters)
Pair's Outlook
The European currency managed to rebound yesterday; however, the weekly PP failed to limit the Euro's gains. As a result, the single currency appreciated 58 pips against the Yen and settled at 137.79. The rally is expected to last through Thursday as well, with the exchange rate crossing the 138.00 psychological level, thus negating this week's losses completely. The immediate resistance, namely the monthly R1, is unlikely to prevent the EUR/JPY cross from climbing, as trade is expected to close around 138.30.
Traders' Sentiment
Bulls keep pushing closer to the equilibrium, as 49% of SWFX traders hold long positions today. The number of purchase orders increased as well. Now 70% of commands are to buy the Euro.
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