OctaFX | OctaFX Forex Broker
Open trading account

EUR/JPY drops to 20-DMA and recovers post BOJ

FXStreet (Mumbai) - A renewed bout of selling interest was seen in the EUR/JPY in the mid-Asian trades, knocking-off the cross to the 20-DMA support after the BOJ decided to leave its monetary policy unchanged, only to recover near 135.20 region.

EUR/JPY falls further on strengthening yen

Currently, the EUR/JPY pair trades -0.22% lower at 135.20, clinging to 135 handle. The EUR/JPY cross met fresh supply near hourly 10-SMA located at 135.50 and accelerated to the downside after the yen received fresh boost from the BOJ unchanged monetary policy stance.

Although the cross found fresh bids at the 20-DMA located just ahead of 135 handle, now attempting a tepid recovery as the BOJ-provoked knee jerk eases-off.
While, the EUR/USD pair trades almost unchanged on the upper bound of the 1.12 handle, fighting hard to regain 1.13 barrier.

Looking ahead, EUR/JPY is expected to take cues from the BOJ presser and Kuroda’s words while the focus shifts towards tomorrow macro calendar amid lack of fresh economic news later today.

EUR/JPY Technical Levels

To the upside, the next resistance lies at 50-DMA located at 135.85, above which it could extend gains to 136.21 (100-DMA) levels, a break beyond which will open doors for 137 barrier. To the downside immediate support might be located at 135.02 (20-DMA) below that the confluence zone of the hourly 100 & 200-SMA at 134.60, could act as a major support.

BoJ: Little clues on further easing by month-end

The Bank of Japan kept its monetary policy steady, pledging to increase monetary base at annual pace of 80 trln yen. Today's decision does not provide any new hint as to whether or not further easing will come into action when the bank next meet.
Read more Previous

Asian stocks edge higher, Nikkei bucks the trend

Asian markets are seen defending moderate gains on Wednesday, shrugging off a weak close overnight on the Wall Street, as the recent rally in commodity prices, especially the oil prices is boosting the energy stocks higher.
Read more Next
Start livechat