EUR/JPY rebounds from last week's low

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Having dropped sharply the previous week net EUR shorts increased modestly suggesting that the recent aggressive unwind of EUR short positions may be running out of steam." 
- Rabobank (based on FXStreet) 


Pair's Outlook 
The European currency declined to on Monday, piercing the July low and reaching a fresh four-month low, as was anticipated. The EUR/JPY currency pair found support in face of the monthly S2 at 132.53, while a rebound is expected today, due to the monthly S2 now being bolstered by the Bollinger band, providing an even stronger support. As a result, the single currency might climb back up above the July low of 133.29 and possibly even to the weekly PP at 133.82 if the Japanese fundamentals disappoint.

Traders' Sentiment 
Only 45% of traders hold long positions today (previously 46%). The buy and the sell commands broke out of the equilibrium, with the purchase ones now taking up 28% of the market.
© Dukascopy Bank SA

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