© Dukascopy Bank
"The last time that [yen carry trades] really would've worked was really in the early '90s. With the view now, though, that the yen is going to depreciate using it as a funding currency makes a lot of sense"
- Faros Trading (based on WSJ)
Industry outlook
EUR/JPY has pierced through 110.26 and is now likely to target higher levels - 111.57 in the short-term and 113.29 in the longer term. At the same time 107.93 should act as a line in the sand and prevent extensive dips.
Traders' sentiment
In general market participants with opened positions on EUR/JPY express no preference towards one the currencies, since the shares of long and short trades are nearly the same, being 51 and 49% per cent of the total amount.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 110.86, 111.41 and 112.25.
Short position opened
Bearish traders will pay attention to the key support levels to close their deals. The forecast targets are 109.47, 108.63 and 108.08.
© Dukascopy Bank