EUR/JPY to slide down

Even though EUR/JPY presently recovers, this rally is unlikely to extend beyond 99.69 or 100.77. The overall outlook is bearish, as the currency pair targets 94.92 in the longer term, while supports at 97.90 and 95.90/40 will have to be dealt with first.

The percentage market participants (67.43%) holding long positions is gradually decreasing, although the aggregate sentiment remains bullish, as bearish traders are in minority, constituting 32.57% of the market.

Initial resistance area for the pair is situated at 98.46. Subsequent goals for the bullish market payers may be found at 98.84 and 99.44.

Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 97.48. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 96.88 and at S3 of 96.50.