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"A bond swap is a way [the ECB] can save money and allow Greece's debt burden to be more manageable going forward"
- FXDD (based on WSJ)
Industry outlook
Since EUR/JPY is underpinned by a rather strong support, it is expected to maintain its current course to the upside. Resistance located at 104.30 should fall a victim first, followed by 107.52 (200 ma).
Traders' sentiment
Bears have extended their superiority in numbers over bulls and now constitute 56% of the market. At the same time bulls form a lesser part, namely 44%.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 104.35. The breakout of this level will pave a way for a bullish run up to 105.05 and then to 106.26.
Short position opened
A part of the brokers will close their short positions near initial support level at 102.44. In case of downtrend continuation, the pair might rebound from the S2 at 101.23 or S3 at 100.53.
© Dukascopy Bank