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"Markets are pricing in additional easing by the BOJ. A trade deficit is a negative catalyst for the yen"
- Mitsubishi UFJ Morgan Stanley Securities Co. (based on Bloomberg)
Industry outlook
Breakout of 107.10 would confirm intentions of EUR/JPY to continue moving in the upwards direction and would set the following target at 108.62. Provided that 104.24/103.50 stays intact, we could observe a rally up to 111.43/57.
Traders' sentiment
Traders' sentiment is neutral on EUR/JPY currency pair, since the share of bulls has fallen down to 53%, while bears constitute 47% of the market.
Long position opened
Bullish investors should pay attention to the key resistance levels for intraday trading. R1 is situated at 106.97, followed by R2 and R3 at 107.32 and 107.77, respectively.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 106.17. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 105.72 or 105.37.
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