© Dukascopy Bank
"The euro has to go lower. The basis of buying euro on a risk-on day is simply not there anymore"
- Arab Bank Australia (based on CNBC)
Industry outlook
Yet another fruitless attempt to pierce through 111.57 implies EUR/JPY is likely to pull back to 107.83, where it should stabilise and regain strength. Supports are situated at 108.49, 107.83 and 105.65.
Traders' sentiment
At the moment the amount of bears (54%) exceeds the number of bulls (46%) in the market, creating slightly negative sentiment towards EUR/JPY currency pair.
Long position opened
The price might rebound from the first resistance level at 110.03, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 110.49 and 111.17.
Short position opened
Major FX traders expect the price to test the initial support level at 108.89. The breakout of this line will pave the way for the price to test S2 at 108.21 and S3 at 107.75.
© Dukascopy Bank