The BOJ easing had little or no impact and with the market already sitting short Yen, we saw some volatile trading in EUR/JPY. It is now back to where it was pre-BOJ and with the EUR starting to show mild bullish tendencies, I think we may see the bulls take short-term control to at least test important resistance at 104.80 but firstly it must break out of a short-term consolidation range between 102.60/103.40. The market is still short of Yen but probably has good reason to be so, so I don’t expect any more sharp sell-offs in the Yen crosses, at least for the next few days.
