- BoJ official (based on CNBC)
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.
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.