© Dukascopy Bank
"The euro is rallying and all gauges of risk appetite are pointing to a risk-on week"
- Commonwealth Foreign Exchange Inc. (based on Bloomberg)
Industry outlook
Beyond 109.53 (55 week ma) lie resistances 110.18 and 111.57, which should cap the currency couple and halt bullish momentum. From below EUR/JPY is underpinned by 107.09, 106.78 and by 106.02.
Traders' sentiment
Relative to the other currency pairs, the difference between the amounts of long and short trades on EUR/JPY is not as extensive. Bulls and bears constitute 44 and 56 per cent of the market, respectively.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 110.02. The breakout of this level will pave a way for a bullish run up to 110.83 and then to 112.42.
Short position opened
A part of the brokers will close their short positions near initial support level at 107.62. In case of downtrend continuation, the pair might rebound from the S2 at 106.03 or S3 at 105.22.
© Dukascopy Bank