© Dukascopy Bank
"Some yen retracement (stronger) is likely in the next 1-2 months, even if the longer-term trend is for gradual yen depreciation"
- Nomura (based on CNBC)
Industry outlook
Following an unsuccessful attempt to break through 111.57, EUR/JPY is now in the process of a temporary bearish correction, which may last until 107.37 is reached. The initial support and resistance levels are at 108.49 and 109.95, respectively.
Traders' sentiment
The amounts of long and short positions opened on EUR/JPY currency pair are nearly the same, being 51 and 49 per cent of the market, accordingly.
Long position opened
The initial resistance level for the pair is 110.64. If the price continues increasing, the investors will hold longs until the pair climbs up to 111.98 or 112.82.
Short position opened
A part of the brokers will close their short positions near initial support level at 108.46. In case of downtrend continuation, the pair might rebound from the S2 at 107.62 or S3 at 106.28.
© Dukascopy Bank