© Dukascopy Bank
"We all know the bad news, and it's there in the price. To deteriorate from here, you need something worse" to happen in Europe"
- Traxis Partners (based on WSJ)
Industry outlook
EUR/JPY plunged down to 102.54 and we anticipate to observe tepid growth of the pair, which may last until 104.62 is encountered. Longer term outlook implies even more weakness of the Euro relative to the Japanese Yen.
Traders' sentiment
The gap between the shares of long and short positions has narrowed to 12%. Nonetheless, SWFX traders' sentiment remains bullish, as the single currency is the most popular currency at the moment among its major counterparts.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 103.68, 104.39 and 104.86.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 102.50. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 102.03 and 101.32.
© Dukascopy Bank