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- Rabobank (based on Reuters)
Pair's Outlook
The EUR/JPY cross overperformed on Thursday, as the monthly R1 failed to prevent the rally. The Euro not only recovered from this week's losses, but also almost managed to reach last week's high of 138.80. The pair's volatility to the downside is limited by the monthly R1, thus, the single currency is expected rise against the Yen for the third day in a row today, with the nearest resistance now located at 139.14. Furthermore, technical studies retain their bullish signals, bolstering the possibility of a positive outcome.
Traders' Sentiment
Market sentiment remains bearish, as only 48% of traders hold long positions today (previously 49%). At the same time, the portion of orders to acquire the Euro increased from 70 to 83%.
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