© Dukascopy Bank
"With investors already bidding up risky assets on the heels of China's [monetary easing], any progress on a second bailout for Greece will only add to the upside momentum"
- GFT (based on Marketwatch)Industry outlook
EUR/JPY is currently facing a tough resistance zone at 105.44/106.80 which is unlikely to be breached at the very first attempt. Nonetheless, the bias is bullish as long as the pair trades above a key support at 101.67.
Traders' sentiment
Most of the market participants (56%) have acquired the Japanese Yen against the Euro, making the traders' sentiment bearish on EUR/JPY.
Long position opened
The initial resistance level for the pair is 104.95. If the price continues increasing, the investors will hold longs until the pair climbs up to 105.42 or 106.18.
Short position opened
Major FX traders expect the price to test the initial support level at 103.72. The breakout of this line will pave the way for the price to test S2 at 102.96 and S3 at 102.49.
© Dukascopy Bank