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"They will likely cut rates probably by 25 basis points. I think that there's a real need here to provide an element of stimulus and if they stay on hold, I think the market may get a little bit nervous."
- John Stoltzfus, Oppenheimer & Co. Inc. (based on Bloomberg)
Pair's Outlook
EUR/JPY moved lower today, breaching the 55-day SMA. In case bearish inertia strengthens, 101.50 (Upper Bollinger band) is going to be the first target for bulls. Once this level is successfully pierced, 102.17 (R1 Weekly) and 103.31 (200-day SMA; R2 Weekly) will be exposed.
Traders' Sentiment
Traders' sentiment remains bullish on EUR/JPY today, though it slightly weakened compared to yesterday as 71% (74% yesterday) of market participants are presently long on the currency pair and 29% of traders still expect the pair to decline further. The allocation of long and short positions points at a weakening bullish sentiment as 54% of investors expect the pair to advance over the middle term.
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