© Dukascopy Bank
"The big wild card continues to be Europe. That crisis hasn't been resolved, and as long as we have that level of uncertainty you'll always have the safety trade on the dollar"
- Wells Fargo Private Bank (based WSJ)
Industry outlook
EUR/JPY currency couple is slowly crawling upwards after stabilising near 106.33/105.95. Breach of 108.00 would imply additional bullishness of the pair with the possibility to attain 108.62 en route to 109.95.
Traders' sentiment
The majority of market participants (66%) continue staying long on EUR/JPY, expecting the Euro to gain in value comparative to the Japanese Yen.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 107.74, 107.98 and 108.32.
Short position opened
Major FX traders expect the price to test the initial support level at 107.16. The breakout of this line will pave the way for the price to test S2 at 106.82 and S3 at 106.58.
© Dukascopy Bank