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"Austerity should remain the focus for the euro zone, even if ways to examine growth in the region take center stage in the coming weeks."
- German Finance Ministry (based on CNBC)
Industry outlook
EUR/JPY moved lower yesterday and at the moment the pair is approaching the lower boilinger band at 105.27 and, if a breach takes place, the next support at 104.46 would be exposed, confirmed by the 200-day MA.
Traders' sentiment
The gap between the shares of bulls and bears has widened on EUR/JPY. At the moment long positions constitute 72.16% of the total amount of trades, while short positions form 27.84%.
Long position opened
The break of the short-term resistance line 106.24 would pave the way for the pair to rise up to 106.82. The clearance of the second daily resistance level would establish a new target for traders at 107.21.
Short position opened
The immediate support line is at 105.27. Should the price step even lower, it will encounter subsequent levels at 104.88 and 104.30, where recovery might start.
© Dukascopy Bank SA