EUR/JPY (-10)

move lower on the chart before euro open, is lead of the JPY gains, and not euro weakness. Euro is holding it's ground against other currencies, and besides USD is showing some kind of weakness. Equity markets are about leveled, and indication for US open are on/about zero level. Data from US has mixed expectations, and later on in the day, BoJ has a monitory policy statement where they could purchase another trillion JPY of corporate bonds to reduce strength of JPY. We don't believe market is going to drive JPY any stronger besides these levels, and we could see some decent gains on this pair, especially if equity markets show gains. Trend line support is obvious, and we are going to place the stop bellow recent swing low 112.30, and target at 113.50, and then 114.50. Pay attention on reaction to 200 sma at 113.11