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    EUR/JPY stumbles on risk aversion

    © Dukascopy Bank SA
    "Monetary easing actions by the Bank of Japan in the past, most notably in January, have been unable to maintain any lasting yen weakness." 
    - Forex.com (based on Business Recorder) 


    Pair's Outlook 
    The EUR/JPY cross managed to climb higher for the second consecutive day, having reached the second resistance area around 124.40. Today this resistance cluster, represented by the weekly R2 and the 55-day SMA, is expected to provide sufficient supply to trigger a decline, also prompted by the return of risk aversion on the market. The pair is also likely to struggle to pierce the immediate support area in face of the monthly PP, the 20-day SMA and the weekly R1, located circa 123.60. Technical indicators are unable to fully confirm this outlook, as they retain mixed signals in the daily timeframe.

    Traders' Sentiment 
    Today 55% of traders hold long positions, unchanged since Tuesday. The share of orders to buy the European single currency, however, declined from 67 to 56%.
    © Dukascopy Bank SA

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