© Dukascopy Bank
"A rescue for Spain would be huge if it actually happens, and it could make the crisis worse than last year"
- Toyota Asset Management Co. (based on Bloomberg)
Industry outlook
EUR/JPY closes in a support at 104.24/103.50, where the currency pair is expected to commence recovery. The first resistance to encounter is at 106.65/107.00, breach of which will allow for gains up to 108.62.
Traders' sentiment
Traders' sentiment is currently mixed on EUR/JPY, since the portion of bullish market participants (49%) is nearly the same as the share of bearish traders (51%).
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 106.10. The breakout of this level will pave a way for a bullish run up to 106.55 and then to 107.30.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 104.90. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 104.15 and 103.70.
© Dukascopy Bank