EUR/JPY to reach new three-year low

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"It will be unrealistic to expect any changes (to the ECB's asset purchase program) so soon. If anything, the ECB will probably reiterate they stand to do more depending on the data...all this means the euro will be a sell on rallies." 
- Peter Kinsella, Commerzbank (based on CNBC)


Pair's Outlook 
The EUR/JPY cross, after showing elevated volatility yesterday, closed higher. The session low was just over 126 yen, but ultimately the gain amounted to 23 pips. The technical indicators suggest a decline for the given pair on the weekly timeframe, while the daily signs are mixed. We expect the Euro to fall under the 127 level again today. Additional support is represented by the Bollinger band at 126.02.

Traders' Sentiment 
Market sentiment remains bullish, with the share of long positions unchanged at 58%. At the same time, the sell orders prevail over the buy ones, with 68% of commands set to purchase the Yen against the Euro.
© Dukascopy Bank SA

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