EUR/JPY poised for more weakness

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The market had expected more than what the BoJ announced today, which triggered some disappointment and led to the yen's surge. This is showing the ceiling of what monetary policy can do." 
- Sumitomo Mitsui Trust Bank (based on Business Recorder) 


Pair's Outlook 
The EUR/JPY cross inched only seven pips higher during Thursday, but gradually declined earlier today, amid the BoJ disappointing the markets with its stimulus decision. As a result, the pair dropped to the 114.00 major level, but is currently on its way to erase some of these losses. Unless the exchange rate manages to stabilise above the immediate support cluster circa 115.60, the weekly S2 at 114.74 will be the level to pay all attention to. However, this decline might just be a setback on the Euro's path towards the resistance trend-line around 119.00, next week's data is expected to shine more light on the situation. 

Traders' Sentiment 
Bulls keep growing stronger, as 64% of all open positions are now long. Meanwhile, the share of purchase orders inched up from 42 to 60%.
© Dukascopy Bank SA

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