© Dukascopy Bank
"The reaction in the foreign exchange market shows if it really comes to the point where it's clear European politicians will step back from austerity measures that will be perceived as very negative by financial markets"
- Commerzbank (based on Reuters)
Industry outlook
EUR/JPY has just bounced off 103.24 and is advancing towards resistances located at 104.62, 105.17/36 and 106.14, which are unlikely to fall easy preys to the pair. Therefore the focus is currently on supports, namely on 103.24 and 102.55.
Traders' sentiment
For every short position opened on EUR/JPY there are almost two long positions, the ration between the two of them being 34% to 66%.
Long position opened
The price might rebound from the first resistance level at 104.71, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 105.19 and 105.93.
Short position opened
The immediate support line is at 103.49. Should the price step even lower, it will encounter subsequent levels at 102.75 and 102.27, where recovery might start.
© Dukascopy Bank