Dukascopy - Analytics

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    EUR/JPY pushed away from 130

    © Dukascopy Bank SA
    "The deterioration in fundamentals due to the consumption tax hike may be even worse than the BOJ envisioned."
    - Goldman Sachs (based on CNBC)


    Pair's Outlook
    As anticipated, resistance near 130 yen was more than enough to initiate a sell-off. The upside is limited by the monthly S2 and multi-month down-trend, while the weekly S1 is immediate support. However, the losses should extend beyond the latter level, probably down to this year's minimum at 127 yen. Beneath this price lies a falling support line, which is likely to start a bullish correction in the region between 126 and 125 yen.

    Traders' Sentiment
    The gap between the bulls and bears has widened. Now 60% of open positions are long. In the meantime, the percentage of sell orders soared from 53 to 84%, as the market seems to seriously doubts sustainability of the rallies.
    © Dukascopy Bank SA

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