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- Angus Nicholson (based on The Wall Street Journal)
Pair's Outlook
For the fifth consecutive day the Euro edged higher against the Yen, having also retaken the 128.00 major level on Thursday. The Euro still has the potential to rise above the 129.00 mark, with only one strong resistance on its path—the weekly R3 and the 100-day SMA cluster circa 128.75. Once this area is pierced, the European single currency can put the two-year down-trend to the test. Even though technical indicators are bolstering the possibility of a bullish outcome today, we should not rule out the probability of the given cross partially erasing this week's gains. A drop below 126.70 is unlikely, as the six-week up-trend there is bolstered by the 55-day SMA.
Traders' Sentiment
Market sentiment remains close to equilibrium, with 51% of traders being long the Euro. The share of buy orders surged from 27 to 67%.
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