© Dukascopy Bank
"The yen is weakening, boosting earnings for exporters and fueling confidence in the Japanese stock market"
- Shinkin Asset Management Co. (based on Bloomberg)
Industry outlook
EUR/JPY currency pair is about to hit a strong resistance situated at 102.56/63. In case the latter level is breached, the price might increase up to 104.25. Dips should be covered by supports at 100.77 and 100.40/30.
Traders' sentiment
EUR/JPY currency pair has become overbought to a larger extent, since the share of bullish trades has increased up to 63%. Accordingly, the portion of bearish trades has fallen to 37%.
Long position opened
FX market participants have put their take profit orders at the key resistance points of intraday trading. Some of the investors might close their deals at 102.26 and 102.60. The highest level is at 103.24.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 101.28. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 100.64 and at S3 of 100.30.
© Dukascopy Bank