© Dukascopy Bank
"October-December [Japan's] GDP was revised up and the BOJ may raise its assessment on output. When it sees the outlook brightening, it's hard to justify easing again"
- RBS Securities (based on CNBC)
Industry outlook
A strong support at 106.63 should contain short-term dips, while the overall bias is bullish for the currency couple. Despite a recent failure of EUR/JPY to get a foothold above 108.75, the pair should retarget this level and eventually overcome it.
Traders' sentiment
The overwhelming majority of traders (79%) have preferred to set buy orders on EUR/JPY currency pair in anticipation the Yen will lose in value.
Long position opened
The break of the short-term resistance line 108.46 would pave the way for the pair to rise up to 108.76. The clearance of the second daily resistance level would establish a new target for traders at 109.23.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 107.69. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 107.22 and 106.92.
© Dukascopy Bank