© Dukascopy Bank SA
"Over the short term, there appears to be little to jolt markets out of their stupor and if anything, [the euro] is likely to continue to drift higher according to our short-term quantitative models"
- Credit Agricole (based on MarketWatch)
Industry outlook
A fierce resistance lies ahead of EUR/JPY at 111.57 (intervention high). If EUR/USD fails to advance higher, it will commence a slide back towards 106.81 (2-month uptrend). 108.49 (last week low) and 109.08 (20-day ma) might become the initial supports whether this scenario proves to be correct.
Traders' sentiment
Traders' sentiment turned bearish today on EUR/JPY due as difference between the shares of short (54.91%) and long (45.09%) increased.
Long position opened
Forex traders holding long positions on EUR/JPY could partially close their positions near the nearest resistance line at 110.91. If the bullish uptrend strengthens, the next resistance levels at 111.43 and 111.96 will become the next intraday targets.
Short position opened
Major market participants with short positions might fix profits at 109.86. If the bearish impetus strengthens, a breach of this line will expose 109.33 and 108.81 levels for today.
© Dukascopy Bank SA