© Dukascopy Bank
"In the long run, the yen will weaken because of the BOJ's entrenched easing bias. But in the very short-term, there could be some adjustment to the yen's recent fall"
- Credit Suisse (based on Reuters)
Industry outlook
EUR/JPY has just reached a resistance located at 107.88/72 (55 day ma) and is likely to struggle here for some time. Afterwards, however, the currency couple should recommence surging and attain 108.62 en route to 111.43/57.
Traders' sentiment
The portion of bulls in the market has grown up to 65%, making EUR/JPY overbought at the moment, while bears form 35% of the total amount of traders on the pair.
Long position opened
The initial resistance level for the pair is 108.13. If the price continues increasing, the investors will hold longs until the pair climbs up to 108.50 or 109.02.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 107.24, 106.72 and 106.35.
© Dukascopy Bank