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"If the job data sparks risk-on mood, that should lead to the yen's fall and rise in bond yields. This weekend has a chance of triggering such a trend."
- Tokai Tokyo Securities (based on CNBC)
Industry outlook
EUR/JPY recovers from yesterday's lows, though there is a high chance that before committing a proper bullish rally, the pair has to test the lower boilinger band at 105.46 first. However, if a breach takes place here, the next support at 104.46, confirmed by the 200-day MA, would be exposed.
Traders' sentiment
The number of long positions for EUR/JPY vastly exceed the bearish ones, being 72.16% and 27.84%, respectively.
Long position opened
The initial resistance level for the pair is 106.29. If the price continues increasing, the investors will hold longs until the pair climbs up to 106.57 or 106.95.
Short position opened
A part of the brokers will close their short positions near initial support level at 105.63. In case of downtrend continuation, the pair might rebound from the S2 at 105.25 or S3 at 104.97.
© Dukascopy Bank SA