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    EUR/JPY breaks channel's support completely

    © Dukascopy Bank SA
    "The yen is still cheap despite sharp gains this year. It could still strengthen further from here." 
    - Bank of Tokyo-Mitsubishi UFJ Ltd. (based on Bloomberg) 

    Pair's Outlook 
    The EUR/JPY currency pair pierced the channel's lower border on Monday, but failed to reach the second support target. Nonetheless, a breach of the channel implies that more bearish momentum is to come. BoJ Kuroda's statement earlier today provided sufficient impetus for a decline, with the pair suffering more than 100 pips. The exchange rate will doubtfully recover towards the immediate support cluster, thus, more focus should be on the second area—the weekly S2 at 125.24. Technical studies retain bearish signals in the longer timeframes, but the daily ones remain bullish, unable to confirm the scenario. 

    Traders' Sentiment 
    Bullish traders' sentiment remains unchanged at 67%, whereas the portion of buy orders skyrocketed from 35 to 83%.
    © Dukascopy Bank SA

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