© Dukascopy Bank
"The BOJ sounded pretty serious in January and February about making a change to policy. The market was disappointed earlier this week, but if they do give a strong signal the yen will weaken"
- Citigroup (based on WSJ)
Industry outlook
The pair is presently making a bullish correction near 105.93/65 before another leg down to 103.50. The latter level is likely to provide sufficient support in order for EUR/JPY to commence recovering from there.
Traders' sentiment
Traders' sentiment on EUR/JPY has turned neutral, since the amounts of bullish and bearish positions on the pair are nearly the same, being 53 and 47 per cent of the market, respectively.
Long position opened
Initial resistance area for the pair is situated at 106.62. Subsequent goals for the bullish market payers may be found at 107.27 and 107.86.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 105.38. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 104.79 or 104.14.
© Dukascopy Bank