© Dukascopy Bank
"Forecasts that over two-thirds of bond-holders will participate in the bond swap have improved sentiment and led some to buy back the euro"
- Brown Brothers Harriman (based on WSJ)
Industry outlook
EUR/JPY has plunged down to 105.58, from which the pair may rebound, though the rally should by tepid. Below 105.58 the currency couple is likely to target 103.86, while a key level is situated at 102.21/101.79.
Traders' sentiment
The majority of market participants are expecting the Euro to appreciate relative to the Japanese Yen, as most of the orders placed are buy orders (64%).
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 107.40. If the pair manages to go through this level, further resistances are situated at 108.74 and 109.62.
Short position opened
Major FX traders expect the price to test the initial support level at 105.18. The breakout of this line will pave the way for the price to test S2 at 104.30 and S3 at 102.96.
© Dukascopy Bank