© Dukascopy Bank
"Weak data is giving traders an opportunity to take profits. If the recent falls end as a mere correction, the subsequent rally would be stronger thanks to this pullback"
- BTM UFJ (based on CNBC)
Industry outlook
Even though support at 108.71 managed to halt EUR/JPY from nose-diving further, it is likely to be breached in the nearest future. This would allow for the pair to dip to 106.08 (uptrend supports).
Traders' sentiment
The portion of bulls has diminished to 44%, whereas bears now constitute 56% of the total amount of traders who have opened positions on EUR/JPY.
Long position opened
Largest brokers set a new long position target as a break of 110.11 may become an encouraging bullish sign en route to 111.27. If the uptrend remains, the third target for intraday trading will be 112.09.
Short position opened
A part of the brokers will close their short positions near initial support level at 108.13. In case of downtrend continuation, the pair might rebound from the S2 at 107.31 or S3 at 106.15.
© Dukascopy Bank