© Dukascopy Bank
"It's not that people are outright buying the euro to go long on it, but it's more looking like they're buying the euro to get out of their short positions"
- Faros Trading (based on CNBC)
Industry outlook
Penetration of a resistance at 107.10 confirms the ability of EUR/JPY to maintain the current course and climb even higher. The initial target lies at 107.88, while subsequent goals are at 108.62 and 111.43/57.
Traders' sentiment
Traders' sentiment stays mixed on EUR/JPY, since the amounts of long and short positions are nearly equal, constituting 52 and 48 per cent of the market, accordingly.
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 107.51. The breakout of this level will pave a way for a bullish run up to 107.84 and then to 108.35.
Short position opened
Bearish traders will pay attention to the key support levels to close their deals. The forecast targets are 106.67, 106.16 and 105.83.
© Dukascopy Bank