© Dukascopy Bank
"It's difficult for investors to bet on riskier assets just relying on positive economic data from the U.S. There's tension in the market regarding Europe's debt issue"
- Industrial Bank of Korea (based on Bloomberg)
Industry outlook
EUR/JPY currency pair should be capped for now by resistances located at 98.45, 99.45 and 100.77. Supports, however, may be found at 97.82, 97.28 and 96.15. Within the next three months the price is expected to drop down to 95.00/94.92.
Traders' sentiment
The Euro is the most popular currency among the majors at the moment. Therefore EUR/JPY is presently overbought, as the amount of bullish trades (66.36%) considerably exceeds the number of bearish ones (33.64%).
Long position opened
The initial resistance level for the pair is 98.43. If the price continues increasing, the investors will hold longs until the pair climbs up to 98.70 or 98.93.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 97.93. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 97.70 or 97.43.
© Dukascopy Bank