© Dukascopy Bank
"February three-year long-term refinancing operation could add €150 billion to €400 billion of ECB funding"
- Morgan Stanley (based on WSJ)
Industry outlook
The currency pair is already approaching its initial goal located at 100.45/77 and is likely to continue to move en route to 102.55/60 which should cap further advancement. Nonetheless, the long-term outlook is negative with final destination at 94.92.
Traders' sentiment
Number of market participants who expect the Euro to appreciate relative to the Japanese Yen has dropped by 2% to 62%. At the same time 38% of positions opened are short on EUR/JPY.
Long position opened
Investors are suggested to pay close attention to the identified resistance levels for the pair at 100.51, 101.03 and 12.02.
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