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    EUR/JPY finds temporary support at 128.70

    © Dukascopy Bank SA
    "Producers are benefiting from the weaker euro, which has had the dual effect of boosting competitiveness in export markets as well as making competing imports more expensive in the home markets."
    - Markit (based on CNBC)


    Pair's Outlook
    For the time being the weekly S1 at 128.70 serves as a floor, but the risks are considered to be skewed to the downside, being that EUR/JPY is currently trading next to the major down-trend. Yet another weekly support is at 127.62, but the main demand area is at 127, a test of which could potentially result in a break-out to the upside from the falling wedge. In this case we will look at 132 (55-day SMA and 23.6% Fibo) as the next destination for the rate.

    Traders' Sentiment
    An up-tick in the share of long positions turned out to be brief, being that sentiment is back to being neutral. Meanwhile, the percentage of sell orders declined, though they are still in a large majority, taking up 71% of the market.
    © Dukascopy Bank SA

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