© Dukascopy Bank
"It's possible to see euro pick up slightly as people work out the implications of the bailout package and better economic statistics Sentiment toward Europe is slowly improving"
- St. George Bank Ltd. (based on Bloomberg)
Industry outlook
EUR/JPY is currently in a phase of a bearish correction, which may last until 105.65 is reached. However, supports located at 108.68 and 106.26 will attempt to prevent the pair from plummeting to such a low level.
Traders' sentiment
Traders' sentiment is mixed on EUR/JPY due to the fact that the shares of long and short positions in the market are nearly the same, being 47 and 53 per cent, respectively.
Long position opened
Leading market participants, who have entered EUR/JPY market with a buy trade, are expecting to close their positions at the key resistances at 109.85, 110.45 and 111.09.
Short position opened
Major FX traders expect the price to test the initial support level at 108.60. The breakout of this line will pave the way for the price to test S2 at 107.97 and S3 at 107.36.
© Dukascopy Bank