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- Bank of Tokyo-Mitsubishi UFJ (based on Bloomberg)
Pair's Outlook
The European currency managed to post solid gains against the Japanese Yen on Monday, retaking the 123.00 major level. The safe-haven appeal remains weak today as well, which is expected to drive the Yen lower against the Euro for the second day. As a result, the immediate resistance cluster, represented by the 20-day SMA and the monthly PP, is unlikely to prevent the exchange rate from edging higher. The main target is the 124.00 psychological level, while a test of the second resistance area around 124.60, namely the weekly R2 and the 55-day SMA, is possible. Technical indicators, however, are giving mixed signals today, unable to confirm the scenario.
Traders' Sentiment
There are 55% of traders holding long positions today (previously 56%), while 67% of all pending orders are to buy the Euro, down from 79%.
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