Forex: EUR/JPY prints bearish outside day

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Forex: EUR/JPY prints bearish outside day

FITITOL--> FXstreet.com (Barcelona) - EUR/JPY ends the day having printed a bearish outside bar after a session dominated by risk aversion. An early jump towards 106.50 last European trade was counter-attacked by a ferocious round of Yen buying, snapping the rate as low as 105.12 before a mild recovery capped by 105.60.

Current price has been easing back down in the last hour, now at 105.40. On the downside, clearance off Wednesday's low exposes April 16 bottom at 104.63 ahead of larger deep to 103.25, Feb 10 high. On the upside, retake of 106.00 round number in Asia may expose short-lived bounce towards 106.30. At thi point, looks like sellers remain well under control.

Investors are now awaiting the ECB monetary policy decision, expected to maintain the EU benchmark rate at 1%. “A cut in the main refinancing rate seems unlikely seeing as it stands at a record low of 1%” explains Jamie Coleman, Analyst at Forexlive.

"My guess is that they come up with some targeted l iquidity programs along the lines of the alphabet soup (TALF,TSLF, etc…) spit out by the Fed in the wake of the global financial crisis. Maybe yet another program geared toward small banks without marketable collateral" Jamie adds.