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- Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg)
Pair's Outlook
The shared European currency dived against the Yen as the EU commission and Germany cannot agree over the direct bank landing to support Spain. This news strengthened bearish momentum, causing the pair to hit the daily forecast mean at 98.16, exposing 97.01 (January 2011 low) and 96.50 (Lower Bollinger band; S3 Monthly) for the bearish traders.
Traders' Sentiment
Bulls constitute 72% of the total amount of positions opened on EUR/JPY, whereas bears form a smaller part of the market, namely 26%. Within 100-pip range from the present market price, 74% of investors expect the pair to rebound from its record low levels.
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