© Dukascopy Bank
"Buying the euro makes no sense"
- FX Prime Corp. (based on Bloomberg)
Industry outlook
For now EUR/JPY gravitates to 106.85 (200 day ma) and is expected to trade flat. Additional support levels are situated at 106.02 and 105.72 and should contain possible dips. Resistances may by found at 108.75 and 109.38/58.
Traders' sentiment
Traders' sentiment is neutral on EUR/JPY, since the amounts of long and short positions are similar, being 52 and 48 per cent, accordingly.
Long position opened
The break of the short-term resistance line 108.23 would pave the way for the pair to rise up to 108.68. The clearance of the second daily resistance level would establish a new target for traders at 109.34.
Short position opened
A part of the brokers will close their short positions near initial support level at 107.12. In case of downtrend continuation, the pair might rebound from the S2 at 106.46 or S3 at 106.01.
© Dukascopy Bank