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"We think euro/yen could be about to move significantly lower and have a target of 93.50 yen"
- Morgan Stanley (based on CNBC)
Industry outlook
After falling into 11-year lows, EUR/JPY is expected to commence short-term recovery. Rallies in such case should be capped by resistances at 98.82 and 100.77. Nonetheless, the longer term target for the pair lies at 94.92.
Traders' sentiment
Longs continue to dominate on EUR/JPY currency pair, since the Euro is the most popular currency among its major counterparts. Three quarters of traders are currently in favour the common currency, while the rest expect the Yen to appreciate.
Long position opened
The price might rebound from the first resistance level at 97.42, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 97.59 and 97.79.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 97.05, 96.85 and 96.68.
© Dukascopy Bank