© Dukascopy Bank
"We expect investors to continue hunting diversification trades. EUR/JPY, EUR/AUD and EUR/CAD are all likely to see further downside in Q1"
- Rabobank (based on CNBC)
Industry outlook
EUR/JPY currency couple is bearish at the moment, as it is being capped by strong resistances situated at 99.92 and 100.77. In order to reach its long-term target at 88.97 the price will have to penetrate supports located at 95.40, 95.00 and 94.92.
Traders' sentiment
Despite the narrowing gap between the amount of bullish and bearish positions, being 72.52% and 27.48%, respectively, traders' sentiment remains bullish with little change since the last week.
Long position opened
The break of the short-term resistance line 98.52 would pave the way for the pair to rise up to 99.17. The clearance of the second daily resistance level would establish a new target for traders at 99.49.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 97.55. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 97.23 and 96.58.
© Dukascopy Bank