© Dukascopy
"The yen will likely draw demand as a relatively safe currency as risk aversion increases among global investors"
- Kiyohiko Nishimura, BoJ Deputy Governor (based on CNBC)
Industry outlook
The Euro - Japanese Yen currency pair is anticipated to trade within a narrow corridor formed by resistance area at 104.75/105.00 from above and 100.77 from below, as support at 103.08 has been recently breached.
Traders' sentiment
Since the Japanese Yen is the least attractive currency among its major counterparts at the moment, EUR/JPY pair is rather bullish, in majority being composed of traders holding longs - 64.05%. Consequently, the remaining part is short trades and they constitute 35.95% of the market.
Long position opened
The initial resistance level for the pair is 104.37. If the price continues increasing, the investors will hold longs until the pair climbs up to 104.87 or 105.83.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 103.40. If the price continues the downtrend, the dealers might wait for the Euro to depreciate down to 102.93 or 101.97.
© Dukascopy