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EUR/JPY bounces back from 134

© Dukascopy Bank SA
"In the first-quarter, data from the euro area was positive, but in April and May it's showing signs of a slowdown. All in all, it's too early for any tapering in the quantitative easing programme by the ECB. We think the euro will gradually decline." 
- Nomura (based on Reuters)


Pair's Outlook 
Even though the EUR/JPY volatility stretched out to the 134 level, the pair still managed to rebound slightly. The resistance cluster, represented by the weekly S1 and the 20-day SMA, failed to stop the rally, but succeeded in slowing it down. Technical studies retain bullish signals, suggesting the Euro will strengthen again today. Gains should be capped by the weekly PP at 135.62, but a more reliable cluster is located around 137. However, the cross will doubtfully reach that far and most likely stabilise around 136. 

Traders' Sentiment 
The long/short position ratio is now equal to one. Meanwhile, the portion of orders to acquire the Euro added 15 percentage points. The orders now account for 53% of the market.
© Dukascopy Bank SA


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