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EUR/JPY to resume bullish trend

© Dukascopy Bank SA
"The [BoJ] governor had no intention of sending a warning shot to markets." 
- BoJ official (based on CNBC) 


Pair's Outlook 
On Wednesday, the European currency declined a lot more than anticipated. Not only was the 140 psychological easily pierced, but the EUR/JPY pair even tested the weekly PP at 138.55. Ultimately, the cross closed trade just under the 139 major level, but is now showing signs of a possible correction. Meanwhile, technical indicators are too, bolstering the chances of a positive outcome today. However, the monthly R2 at 139.25, the closest resistance, is expected to limit the gains. 

Traders' Sentiment 
Market sentiment broke out of the equilibrium, with 51% of traders now holding short positions. Confidence in purchasing the Euro also deteriorated, as only 35% of commands are to buy the currency.
© Dukascopy Bank SA


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