© Dukascopy Bank
"The resilience of the [Euro] to bad news in Europe has been impressive, and its gains have reflected a speculative market that has been extremely short"
- Credit Agricole (based on Marketwatch)
Industry outlook
EUR/JPY has breached a downtrend implying the possibility of extending its gains. Bullish impetus is expected to last until 100.45/77 or 102.55/60 resistance areas are encountered. The initial support is at 99.33.
Traders' sentiment
The vast majority (64%) of market participants are presently holding bullish trades. At the same time only 36% of them have acquired the Japanese Yen against the Euro.
Long position opened
The break of the short-term resistance line 100.51 would pave the way for the pair to rise up to 101.03. The clearance of the second daily resistance level would establish a new target for traders at 102.02.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 99.00. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 98.01 and 97.49.
© Dukascopy Bank