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"I don't think in the long run [a weak yen is] going to be sustainable, with the prospect of QE3 [by Fed] still on the table"
- Chris Fernandes, vice president at Bank of the West (based on WSJ)
Industry outlook
As long as the currency couple remains above a key support at 101.11/05 the bias will be bullish for the pair. Recent violation of a resistance line at 102.55/60 allows further advancement up to 104.30 with the possibility of extending rally up to 107.52 (200 day ma).
Traders' sentiment
Traders' sentiment on EUR/JPY has turned bearish, as the largest part of market participants preferred acquiring the Japanese Yen against the single currency. The ratio between the amounts of long and short positions is 40% to 60%.
Long position opened
The initial resistance level for intraday trading is 103.51. Bulls might establish additional targets at 104.03 and 104.88 if the Euro appreciates even more.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 102.14, 101.29 and 100.77.
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