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– MUFG (based on FXStreet)
Pair's Outlook
Once again the 113.00 psychological level prevented the pair from sustaining sharper losses yesterday, despite volatility edging significantly lower. Consequently, the EUR/JPY cross is now likely to edge higher, preserving its consolidation trend with the 113.00 and the 113.65 levels being the lower and upper boundaries, respectively. The bullish potential is also likely to be limited due to the weekly PP being the nearest resistance at 113.29, which prevented the Euro from rising higher since the beginning of the week. Nonetheless, technical indicators retain bearish signals, thus, we should not rule out the possibility of a close under 113.00.
Traders' Sentiment
Today 66% of traders hold long positions, whereas more than three quarters (76%) of all pending orders are to buy the European currency.
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