© Dukascopy Bank
"Risk currencies will likely stay in fairly tight ranges ahead of the jobs reports later in the day"
- Bank of Tokyo-Mitsubishi UFJ (based on CNBC)
Industry outlook
Recent failure to overcome 102.55 signifies weakness of the pair which is likely to continue sliding down. The initial support is at 98.90, while subsequent levels will be encountered at 98.80 and 97.04.
Traders' sentiment
The gap between the amount of bullish and bearish trades on EUR/JPY has widened. At the moment two out of three positions are long, consequently, the rest are short ones.
Long position opened
The initial resistance level for the pair is 100.55. If the price continues increasing, the investors will hold longs until the pair climbs up to 100.92 or 101.39.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 99.71. If the price continues trending glower, the dealers might wait for the price to depreciate down to 99.24 or 98.87.
© Dukascopy Bank