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    EUR/JPY on the back foot

    © Dukascopy Bank SA
    "The BoJ's decision to implement a negative rate has contributed to the unfavorable outcome of lifting the volatility of the yen in the near-term." 
    - Bank of Tokyo-Mitsubishi (based on WBP Online)


    Pair's Outlook 
    The Euro suffered a massive 220-pip loss against the Yen on Wednesday, as demand for safe-haven assets increased. Even though the pair now faces a support cluster in face of the weekly S3 and the monthly S1 at 127.50, the risk-off sentiment is bound to drive the EUR/JPY even lower. The second target is represented by the 2015 low and the recently formed descending channel's support line around 126.05, but we might even see a breach and, thus, a slump towards the 125.00 psychological level. Meanwhile, technical studies insist the given cross is to rally at least towards 128.82. 

    Traders' Sentiment
    Bullish market sentiment returned to its Tuesday's level of 58%, while the portion of purchase orders increase again, from 53 to 71%.
    © Dukascopy Bank SA

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