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EUR/JPY falls to 5-DMA after Draghi speech

FXStreet (Mumbai) - The EUR fell against the Japanese Yen, taking the EUR/JPY pair down to its 5-DMA level of 146.89 after the European Central Bank (ECB) chief Mario Draghi said the central bank is ready to expand the asset purchase program if needed.

The EUR/JPY pair traded 0.92% lower at 146.89 at the time of writing. The single currency fell after Draghi said a persistent low inflation level in the Euro zone despite the negative rates, and Targeted LTRO would necessitate expansion of the current asset purchase program. His statements fired up expectations of aggressive easing measures ahead.

Moreover, the pair suffered a double blow as the Yen was already on a corrective mode after the Japanese finance minister expressed concerns regarding the rapid decline in the yen against the US Dollar. He added that sharp swings in the exchange rate were “undesirable,” with repercussions for the economy.

EUR/JPY Technical Levels

The pair has an immediate support at 146.57, under which losses could be extended to 145.86 levels. On the other hand, the pair may move back to 1476.76 levels, if the 5-DMA level of 146.89 is sustained.

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