© Dukascopy Bank SA
|
- Brown Brothers Harriman (based on CNBC)
Industry outlook
EUR/JPY failed to commence a bullish rally yesterday as it remains squeezed to the lower Bollinger band at 104.62. Key support remains at 104.25/23. A breakthrough downwards would pave the way to 102.54 level, the 61.8% retracement of the move seen this year.
Traders' sentiment
The majority of market participants are expecting the Euro to appreciate relative to the Japanese Yen, as most of the orders placed are buy orders (63.05%).
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 105.95. If the pair manages to go through this level, further resistances are situated at 106.45 and 106.77.
Short position opened
Major FX traders expect the price to test the initial support level at 105.13. The breakout of this line will pave the way for the price to test S2 at 104.81 and S3 at 104.31.
© Dukascopy Bank SA