Traders, it’s another boring Monday with slow economic activity. However, the traders are pricing in the dovish remarks from the Bank of Japan Governor Haruhiko Kuroda. He stated that the Japanese economy is miles from where it wants to be.
Some translated those words as laying the groundwork for a shift from loose monetary policy to the ultra-accommodation.
That’s the reason why investors ignored the Revised Industrial Production which jumped by -3.4%, at a better pace than -3.7% forecast and previous -3.7%.
Key Trading Level: 126.29
Enough said about fundamentals. I’m looking to enter a buy position as the bullish technical indicators are lining up. The EUR/JPY has a solid resistance up there at 126.600 and that’s the only hurdle keeping me from taking a buying position.
The bullish breakout above 126.600 to 126.800 and 127.400. Let’s be patient and wait for an appropriate time to enter the market.