© Dukascopy
"We are reaching the limit for manufacturing in Japan"
- Fukoku Asset Management (based on Reuters)
Industry outlook
While approaching 103.08 the bearish impetus seems to be losing power, therefore we might observe some small rallies up to 104.75 and 105.32. Dips, on the other hand, will be limited by 103.40, 103.08 and 102.44.
Traders' sentiment
Traders are considerably more bullish on EUR/JPY currency pair, as the amount of longs in the market has surged up to 64.28%, while shorts have tumbled down to 35.72%, as the Euro is the most attractive currency at the moment.
Long position opened
The break of the short-term resistance line 104.00 would pave the way for the pair to rise up to 104.46. The clearance of the second daily resistance level would establish a new target for traders at 105.22.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 103.25. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 102.94 and 102.18.
© Dukascopy