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- Minori Uchida, Bank of Tokyo-Mitsubishi UFJ Ltd (Tokyo) (based on Bloomberg)
Pair's Outlook
The gains acquired during Friday's trading session have been reversed today, as the Euro is continuing to depreciate against the Yen. The currency has moved downwards since March 12, targeting the monthly PP located at 120.01. The direction is expected to remain; however, it is yet to be seen if this level of support is breached. The closest upper limit for the Euro is a strong resistance cluster formed by the weekly PP, the 20-day, 100-day and 55-day SMAs. A possible crossover of the latter two will indicate a bearish market, resulting in further losses for the pair. In addition, technical indicators demonstrate that the downward momentum will persist.
Traders' Sentiment
Traders' sentiment has changed, as 49% of open positions are long. However, 54% of pending orders are to buy the Euro.
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