© Dukascopy Bank
"At present, Europe's debt problem poses the biggest risk for the global economy, including Japan's"
- Masaaki Shirakawa, BoJ Governor (based on Reuters)
Industry outlook
The Euro - Japanese Yen currency pair has effortlessly pierced through a resistance zone at 100.45/77 and is now headed toward 102.55/60. The initial support lies at 100.77 and should limit possible losses.
Traders' sentiment
The share of market participants holding long positions has significantly decreased, down to 53%. At the same time the portion of short positions now constitutes 47% of the total amount of the trades.
Long position opened
The initial resistance level for the pair is 101.69. If the price continues increasing, the investors will hold longs until the pair climbs up to 102.12 or 102.96.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 100.42. If the price continues the downtrend, the dealers might wait for the Euro to depreciate down to 99.58 or 99.15.
© Dukascopy Bank