EUR/JPY retreats again, faces 139 major level

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"At present, I don't think yen declines are causing severe damage to Japan's economy. There's absolutely no truth to the view that the weak yen will deprive monetary policy of flexibility." 
- Haruhiko Kuroda, BoJ (based on CNBC) 

Pair's Outlook 
The European currency resumed its trade within the borders of an ascending channel. After a sharp rally on Wednesday, the EUR/JPY cross could not avoid a correction, which forced the given pair to stabilise under the 140 psychological level. Nevertheless, the Euro is likely to experience more weakness today, even though technical studies retain mixed signals. We expect the single currency to decline at least towards the support cluster around 139.20, represented by the monthly R2 and weekly PP. 

Traders' Sentiment 
Market sentiment retreated once more, as only 49% of positions are long today (previously 51%). Meanwhile, pending orders broke out of the equilibrium. Now 54% of them are to acquire the Euro.
© Dukascopy Bank SA

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