© Dukascopy
"If German bond yields keep rising, that could even be a trigger for break-up of the euro"
- SMBC Nikko Securities (based on Reuters)
Industry outlook
Neither bullish nor bearish momentum is likely to appear on EUR/JPY chart for some time, as resistance at 106.80 and support at 103.08 should halt any movements of the price. Therefore EUR/JPY is anticipated to base upon 103.08 and continue trading sideways.
Traders' sentiment
More and more liquidity consumers prefer acquiring the European currency against the Japanese Yen. At the moment bulls compose 60.8% of EUR/JPY market, whereas bears form only 39.2%.
Long position opened
Initial resistance area for the pair is situated at 103.80. Subsequent goals for the bullish market payers may be found at 104.50 and 105.57.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 102.73. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 102.36 and at S3 of 101.29.
© Dukascopy