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    EUR/JPY edges higher despite bearish signals

    © Dukascopy Bank SA
    "ECB's QE continues to take a toll on the euro. Euro zone bond yields were thought to have mostly priced in the QE launch beforehand, but the magnitude of their decline has shown that such expectations were premature." 
    - Shinchiro Kadota, Barclays (based on Reuters)


    Pair's Outlook 
    The Euro advanced against the Yen despite the bearish technical indicators, proving yesterday's forecast correct. Resistance at 128.71 managed to prevent further rally, as the cross closed just under this level at 128.58. Today, the single curreny is likely to decline, while the technical studies are bolstering the bearish bias. Nearest support rests at 127.42, represented by the monthly S3, whereas the closest resistance level remains the same. 

    Traders' Sentiment 
    Liquidity consumer confidence improved, as 57% (previously 54%) of all positions are now long. At the same time, the number buy orders in the 100-pip range from the spot price decreased ten percentage points to 40%.
    © Dukascopy Bank SA

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