Haruhiko Kuroda is expected to hold a press conference where he could tell something about the monetary policy that he will adopt. The markets are expecting a new and aggressive approach from Kuroda, after all that is way Shirakawa didn’t get another mandate. If this will happen then we might see a lower yen in front of the dollar and Euro.
If governor Kuroda will disappoint the market we may see a rally of the yen, sustained also by the bad economic data published today from Europe.
On the EURJPY chart we can see a symmetrical triangle consolidation. This setup will be activated if the price will break the lower line of the triangle. The target for the down move is set in a very important support area at 114.90. Here it is found the 50 percent retrace of the last rally and an upper channel line. This fall could be also signaled by a drop under 52.29 on the 28 periods RSI.
Confirmation Level: 121.33
Take Profit: 114.90
Stop Loss: 123.57
If the latest low, 119.00, will be hit, move stop loss on break even.