© Dukascopy Bank
"There has been a movement into yen on back of European liquidity problems. There's definitely an uptick in sovereign-debt fears, and all those outbreaks are yen bullish"
- Global Hunter Securities (based on WSJ)
Industry outlook
EUR/JPY has halted its downward move, but this is viewed only as a very near-term tendency. Sustained rally is unlikely to appear on the chart before the pair encounters 104.24/103.50, then bearish correction will be considered to be over.
Traders' sentiment
The ratio of bullish traders to bearish ones, being 54 to 46%, on EUR/JPY currency pair changed inconsiderably, even though the European currency is the most popular at the moment among its counterparts.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 106.98, 107.32 and 107.83.
Short position opened
Bearish traders will pay attention to the key support levels to close their deals. The forecast targets are 106.13, 105.62 and 105.28.
© Dukascopy Bank