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"That was good work by the BOJ. It's very difficult to stop the yen from weakening"
- Daiwa SB Investments (based on WSJ)
Industry outlook
After attaining 109.32/58 (55 week ma) EUR/JPY is expected to pull back to a support at 107.41 as part of its bearish correction before setting new targets at 110.26 and 111.57. In the longer term we may observe advancement towards 113.29.
Traders' sentiment
The gap between the portions of bulls and bears on EUR/JPY has narrowed down to 6%, signifying mixed sentiment in the market.
Long position opened
The price might rebound from the first resistance level at 109.75, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 110.22 and 110.80.
Short position opened
Bearish market players will pay attention to a near-term support at 108.70. The downtrend continuation will establish the following targets for traders: S2 at 108.12 and S3 at 107.65.
© Dukascopy Bank