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    EUR/JPY poised to extend recovery

    © Dukascopy Bank SA
    "In terms of FX price action, we've reverted to the trend that was in place before the weekend's terrible events (in France), which is euro underperforming into the December ECB on expectations of increased QE." 
    - RBC Capital Markets (based on CNBC) 


    Pair's Outlook 
    After testing the weekly PP at 132.23 and the cluster around 130.60, the European currency managed to gain only 33 pips, failing to stabilise above the 1.32 target. The outlook remains positive, as the EUR/JPY cross has another chance of reaching the major level of 132.00 today. However, the weekly PP keeps acting as a rather strong supply area, while the cluster around 130.60 remains a solid demand. Furthermore, the weekly S1 is also providing support and preventing the pair from edging lower, and technical studies are no longer giving bearish signals. 

    Traders' Sentiment 
    Bulls retreated again, as only 46% of all positions are long (previously 49%). The share of sell orders increased from 48 to 60%.
    © Dukascopy Bank SA

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