© Dukascopy Bank
"Watching Spain now is exactly like watching Ireland around October 2010 before Ireland was forced into its bailout"
- Roubini Global Economics (based on Bloomberg)
Industry outlook
EUR/JPY slumped lower last week as the market aims to stick to the near-term support level at 106.49. It might approach the 55-day MA located and higher Bollinger band around 107.80/99 and a breach here would reiterate a bullish momentum for the pair.
Traders' sentiment
The share of long positions has slightly dropped to 59.9%, leaving the overall bullish stance of traders unaltered after the Spain's loss of the "A" sovereign credit rating.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 107.14. If the pair manages to go through this level, further resistances are situated at 107.97 and 108.46.
Short position opened
Bearish traders will pay attention to the key support levels in order to close their deals. The primary forecast target is 105.82. If the pair erodes this level, then it might rebound from S2 of 105.33 or S3 of 104.50.
© Dukascopy Bank