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- Bank of Tokyo-Mitsubishi (based on WBP Online)
Pair's Outlook
Even though the EUR/JPY cross closed under the weekly PP on Friday, a decline towards the 200-day SMA seems out of reach. Nevertheless, the Euro refuses to drop below the 20-day SMA for more than a week now, which also supports the pair at 135.29 today, but remains the final obstacle in front of the 134.40 cluster (200-day SMA, weekly and monthly S1s). The single currency now also has a number of resistances blocking its path, thus preserving the overall bearish trend.
Traders' Sentiment
Although close to equilibrium, bears remain in the majority, with 52% of all positions being short. The portion of orders to sell the Euro now takes up 66% of the market, up from 60% previously.
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