© Dukascopy Bank
"The worse-than-expected Tankan survey seems to be fueling talk that the BOJ will ease policy further"
- Forecast Pte (based on Bloomberg)
Industry outlook
Despite a recent failure of EUR/JPY to overcome resistance at 111.57, the currency couple is anticipated to make another attempt to breach it. Above 111.57 the pair should target 113.15/29. Supports are at 109.33, 108.49 and 107.18.
Traders' sentiment
Bulls constitute 44% of the total amount of positions opened on EUR/JPY, whereas bears form a larger part of the market, namely 56%.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 111.03. If the pair manages to go through this level, further resistances are situated at 111.60 and 112.60.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 109.46. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 108.46 and at S3 of 107.89.
© Dukascopy Bank