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EUR/JPY volatility eases after ECBocalypse

© Dukascopy Bank SA
"It appears that ECB President (Mario) Draghi wants to keep some ammunition on hand if conditions worsen. But he has also hobbled his ability to move markets with rhetoric alone, since this recent experience has been much more talk than material action."
 - Bank of New Zealand (based on Business Recorder) 

Pair's Outlook 
The third resistance cluster was unable to hold the EUR/JPY cross from rising further, which resulted in the pair appreciating above the 134.00 major level and meeting resistance only at 134.55, with trade closing on top of the 200-day SMA at 134.10. After such a huge rally the Euro could undergo a correction and erase some of those gains. The Bollinger band and the 55-day SMA form a support around 133.50, which should limit the losses. Nevertheless, the given pair still has the potential to reach the one-year down-trend if the monthly R1 and 100-day SMA fail at holding gains around 134.60. 

Traders' Sentiment
Bulls and bears broke out of the equilibrium, with 67% of traders being long the Euro. The share of buy orders slid from 78 to 41%.
© Dukascopy Bank SA


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