© Dukascopy Bank
"The reason the euro is not falling more rapidly and more aggressively is that there is an underlying expectation that a deal [with Greece] will be reached"
- Wells Fargo & Co. (based on Bloomberg)
Industry outlook
Current bullish correction is likely to last until 101.15 (55 day ma) is reached. Afterwards EUR/JPY should recommence declining down to its long-term goal at 95.00 while being capped by 102.55/60 resistance.
Traders' sentiment
The share of bullish trades on EUR/JPY has increased up to 72%, while the share of bearish ones has consequently dropped down to 28%, increasing the chance of the pair falling.
Long position opened
Initial resistance area for the pair is situated at 100.79. Subsequent goals for the bullish market payers may be found at 101.07 and 101.54.
Short position opened
Bearish traders will pay attention to the key support levels in order to close their deals. The primary forecast target is 100.04. If the pair erodes this level, then it might rebound from S2 of 99.57 or S3 of 99.29.
© Dukascopy Bank