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    EUR/JPY undergoes a correction

    © Dukascopy Bank SA
    "Despite ECB QE trades coming under pressure, our rates strategists note that the rise in euro rates comes during the month with positive net supply balance even after ECB QE purchases are netted out." 
    - BNP Paribas (based on WBP Online)

    Pair's Outlook 
    On Wednesday, the Euro overperformed, as it appreciated against the Yen a lot more than anticipated. The EUR/JPY cross went over the 135 level and even reached as far as the nearest resistance. Ultimately, the pair stabilised at 135.38. Today, however, a slight correction is likely to take place. The single currency is to retreat to the 135 level, despite that the closest support rests at 132.90. Nevertheless, technical indicators keep pointing north-ish, suggesting further rally, which will doubtfully occur. 

    Traders' Sentiment 
    Market sentiment remains unchanged, with 45% of all positions being long. At the same time, the number of buy orders decreased, as today only 34% of them are to acquire the Euro (previously 48%).
    © Dukascopy Bank SA

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