© Dukascopy Bank
"Excessive pessimism has receded at the end of the year, and what we're seeing is some unwinding of safe-haven buying of currencies like the dollar and yen"
- Mizuho Securities Co. (based on Bloomberg)
пЃ® Industry outlook
While being capped by a cluster of resistances at 101.84 (22 hour ma and a downtrend), the pair is unlikely to show extensive rallies. On the contrary, it is expected to fall down to 101.76 first and then breach this level before stepping lower.
пЃ® Traders' sentiment
Being that presently the Japanese Yen is the least popular currency, traders' sentiment in EUR/JPY market is extremely bullish. 78.11% of all the positions held are long, whereas the rest (21.89%) are short.
пЃ® Long position opened
Investors are suggested to pay close attention to the identified resistance levels for the pair at 102.32, 102.65 and 102.95.
пЃ® Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 101.69. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 101.39 and 101.06.
© Dukascopy Bank