© Dukascopy Bank
"European Union discussions on the scale of the ESM (European Stability Mechanism), the Spanish government's 2012 budget plan and the China PMI figure... ahead of this, as well as all the U.S. data, the market is cautious"
- SMBC Friend Securities (based on CNBC)
Industry outlook
As anticipated, EUR/JPY slipped lower yesterday ahead of the 111.57 level (intervention high). As EUR/USD continues to hold bearish tone, the pair will move to the 107.00 near the 200-day ma 2-month uptrend.
Traders' sentiment
Traders' sentiment maintains bearish bias today on EUR/JPY as the shares of short (55.53%) and long (44.47%) positions remained practically unchanged.
Long position opened
Forex traders keeping buy positions on EUR/JPY could partially close them near the closest resistance line at 110.53. If the bullish uptrend strengthens, the next resistance levels at 111.39 and 111.396 will become the next intraday targets.
Short position opened
Market participants with short positions might be looking for partially closing their positions at 110.53. Should the market slump further, it will face S2 at 107.89 and 107.03 levels for today.
© Dukascopy Bank