© Dukascopy Bank
"Perhaps we are seeing a sustained devaluation of the yen, which would improve the outlook for Japanese exporters in particular"
- Pengana Capital Ltd. (based on Bloomberg)
Industry outlook
In order to maintain its bullish momentum EUR/JPY has to trade above a support located at 107.15. The price has already attained 109.32/58 (55 week ma) and is likely to make a short-term correction there before it recommences to advance.
Traders' sentiment
The amount of bulls presently exceeds the amount of bears on EUR/JPY, as long trades constitute 58% of the market, while short ones form 42% of it.
Long position opened
The initial resistance level for the pair is 109.54. If the price continues increasing, the investors will hold longs until the pair climbs up to 109.96 or 110.54.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 108.54. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 107.96 and 107.54.
© Dukascopy Bank