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"For the acceptance of the euro on financial markets, the banking union is very important."
- German Chancellor Angela Merkel (based on RTE)
Pair's Outlook
Pair seems to be unprepared to advance above the monthly R1 and if it will not manage to show a solid close above this level we expect it to trail lower. Dip below the 140 JPY seems to be a very plausible expectation at the moment, but we don't expect it to fall below the 2003 high around 139 JPY. In case of an unexpected recovery, the pair should advance above the 2013 high in order to ignite a rally.
Traders' Sentiment
Bullish side of pending orders dropped by 6% today but remains at the overwhelming level of 73%. However, this change did not translate in any way in to the distribution of open positions—bulls continue to hold 40% of them.
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