"Draghi made it very clear that he's not intending any change in the forward guidance, that policy still needs to remain expansionary for a very long time, and the more positive outlook depends on this expansionary stance."
- Esther Reichelt, Commerzbank currency strategist (based on The Business Times)
Pair's Outlook
EUR/JPY has traded both in the green and red areas today. However, the downside volatility favours the euro bears, indicating that a move southward within this trading session is possible. The exchange rate has traded down as low as the support cluster around 117.30 formed by the lower Bollinger band, the weekly S2 and the monthly S1. If the current trend is set to persist, the pair might appreciate slightly before tapering towards the 200-day SMA located at 117.79. This level has provided support on several occasions; thus, a breach might result in sharp losses for the pair.
Traders' Sentiment
There are 70% of traders holding long positions today, in comparison to 67% on Wednesday. In addition, 65% of pending orders are to buy the Euro.
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