© Dukascopy
"The outlook for the euro is worsening gradually because clearly there's been contagion in the euro zone debt markets"
- BNY Mellon (based on CNBC)
Industry outlook
EUR/JPY has successfully tested 103.40 and now the bearish momentum is gradually gaining strength to drag the price down to 103.08. Should the latter support be breached, then this drop might extend down to 100.77.
Traders' sentiment
EUR/JPY market is slightly more bearish than yesterday morning. 58.53% of traders continue to keep long positions, while 41.47% of market participants expect the Japanese Yen to appreciate.
Long position opened
Initial resistance area for the pair is situated at 104.17. Subsequent goals for the bullish market payers may be found at 104.76 and 105.74.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 103.19. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 102.81 and at S3 of 101.83.
© Dukascopy