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- Bank of Tokyo-Mitsubishi (based on WBP Online)
Pair's Outlook
Even though the European currency outperformed the Japanese Yen on Monday, the pair still failed to climb above the July low of 133.29. Nevertheless, due to broadly weaker Asian currencies today, the Yen is expected to weaken against the Euro today as well, clearing the path for a rally towards the weekly pivot point. However, a stronger resistance rests around 134.30, represented by the monthly S1 and the Bollinger band. Meanwhile, technical studies are giving bearish signals, suggesting the EUR/JPY is to slump today.
Traders' Sentiment
Bears keep outnumbering the bulls, with 58% of all positions being short (previously 55%). At the same time, the number of purchase orders, however, added 11 percentage points to 39%.
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