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    EUR/JPY: false hopes of recovery

    © Dukascopy Bank SA
    "Unless we get protests from other trading partners about a weakening euro, I think the trend will continue. There have been some noises from the U.S. but as long as the Europeans are happy with the currency weakness, the euro can go down further." 
    - Yujiro Goto, Nomura (based on Reuters)

    Pair's Outlook 
    A slight rebound in the Euro took place yesterday. The initial resistance level at 128.44 was easily pierced, while the second level around 129.75 was not even reached. By the end of the day, EUR/JPY settled at 128.96. However, technical indicators are bearish in the daily timeframe and the QE keeps weighing on the Euro; thus a further decline is expected today. The closest support lies at the weekly S2 level, whereas the nearest resistance (in case the pair turns the tide) rests around a 129.75 cluster. 

    Traders' Sentiment 
    Sentiment among traders remains bullish at 57%, although slightly weaker than yesterday (58%). The number of orders to buy the Euro has surged, and 51% of them are now long, as 49% are short.
    © Dukascopy Bank SA

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