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EUR/JPY to end the week higher

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"Too much is being priced in to the euro for the ECB., even if they were to cut by 20 basis points and introduce tiering of rates, it would be hard for the euro or the bond market to go further than where they are. We think there is a risk that the euro bounces. Our top way to play this is buying the euro against the yen." 
- BNP Paribas (based on Reuters) 


Pair's Outlook 
As was anticipated, with the improved risk sentiment, the Euro managed to edge higher against the Yen, climbing over the weekly PP at 124.20. This level is now acting as the immediate support, but technical studies are still giving bearish signals, although not as strong as yesterday. If bulls succeed in pushing the EUR/JPY cross higher, the resistance area around 125.80 is likely to keep the pair from advancing further. On the other hand, insufficient demand at 124.20 could lead to a decline towards the second support, namely the weekly S1 at 122.84. 

Traders' Sentiment 
Market sentiment slightly worsened, but is now equally divided between bulls and bears. The number of orders to acquire the European currency, on the other hand, remains unchanged, taking up 59% of the market.
© Dukascopy Bank SA


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