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"The BOJ will add JPY 5 trillion to JPY 10 trillion to its asset-purchasing program, in addition to the JPY 10 trillion in buying announced in February"
- Mizuho Securities (based on WSJ)
Industry outlook
EUR/JPY had failed to overcome 107.88/49 (55 day ma) and then dipped down to 106.33/105.95, where the currency couple should commence recovery. Once 108.00 is breached, the next target will become 108.62.
Traders' sentiment
The share of long positions (68%) continues to exceed the share of short ones (32%) significantly, implying the overall upward sentiment.
Long position opened
The price might rebound from the first resistance level at 107.63, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 108.46 and 109.12.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 106.14. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 105.48 and at S3 of 104.65.
© Dukascopy Bank