© Dukascopy Bank
"Japan's economy will likely return to growth this quarter and maintain a good pace of growth in the following quarters"
- Nomura Securities Co. (based on Bloomberg)
Industry outlook
Upside impetus of the pair has vanished, implying EUR/JPY is likely to start falling down from 111.57. The price is now expected to reach 108.45 while being en route to a longer term target located at 105.89.
Traders' sentiment
Even though the gap between the bulls and the bears has widened, it did not affect the overall trader' sentiment, the ratio between them is 53% to 47%, respectively.
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 111.09. The breakout of this level will pave a way for a bullish run up to 111.95 and then to 112.48.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 109.70. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 109.17 and at S3 of 108.31.
© Dukascopy Bank