© Dukascopy
"BOJ may ease early next year when the effects of last month's currency intervention and monetary easing will fade"
- Meiji Yasuda Life Insurance (based on Reuters)
Industry outlook
Since a tough support at 104.75 was breached, subsequent levels will be tested in the near-term - 103.08 and 100.77. From above the price is capped by a key resistance levels situated at 106.60/80 and 108.50.
Traders' sentiment
The majority of market participants, namely 61.39%, are currently holding long positions. Alternatively, the rest of traders, being 38.61% of the market, keep shorts and expect Japanese Yen to gain in value.
Long position opened
Investors are suggested to pay close attention to the identified resistance levels for the pair which may be found at the levels of 105.11, 106.12 and 107.71.
Short position opened
A part of the brokers will close their short positions near the initial support level at 103.53. In case of downtrend continuation, the pair might rebound from the S2 at 102.96 or S3 at 101.37.
© Dukascopy