© Dukascopy
|
- Ichiyoshi Investment Management (based on Bloomberg)
Industry outlook
$EUR/JPY failed to climb over a downtrend line at 107.31 which has successfully stopped a rally. Therefore the pair is now likely to commence declining, first down to 105.00, and afterwards even lower to 103.90.$
Traders' sentiment
The number of market participants keeping long positions has hardly increased - up to 36.86%, whereas the majority is still bearish traders who currently constitute 63.14% of EUR/JPY market.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 107.06. If the pair manages to go through this level, further resistances are situated at 108.52 and 110.84.
Short position opened
The immediate support line is at 104.75. Should the price step even lower, it will encounter subsequent levels at 103.89 and 101.57, where recovery might start.