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"If the yen shoots up and stock prices fall, the BOJ may hold an emergency meeting to increase government bond purchases and buy bonds with longer dates until maturity. But any such action by the BOJ alone probably won't contain market turmoil."
- Meiji Yasuda Life Insurance (based on CNBC)
Pair's Outlook
EUR/JPY moved slightly higher today after the Eurozone trade balance rose more than analysts expected (6.2B act./4.2B est.). If bullish trend to hold, 101.42 level (Initial resistance line) is going to be targeted by bullish investors. A breakout here would expose next levels at 102.08 (R1 Weekly) and 103.74/53 (55-day ma; R1 Monthly) respectively.
Traders' Sentiment
Traders' sentiment is bullish on the EUR/JPY currency pair, as the share of long positions outweigh the short ones (63%/37%). Within 100 points from the present market price, EUR/JPY is expected to fall over the long run by 76% of investors, whereas 24% of traders anticipate a continuation of the rally.
© Dukascopy Bank SA