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EUR/JPY: risks ahead of BoJ - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that the EUR/JPY managed to recover some ground amid a weakening JPY and the EUR upward corrective move, although the pair was unable to regain the 133.00 level.

Key Quotes:

"Despite stocks closed generally lower across the world, investors chose to sell the Japanese currency, ahead of the BOJ meeting at the beginning of the Asian session, in which the Central Bank is expected to announce an extension of its ongoing stimulus program."

"Technically and in the short term, the 1 hour chart shows that the price stalled below a strongly bearish 100 SMA, whilst the Momentum indicator turned flat in overbought territory, and the RSI indicator lacks directional strength around 58. In the 4 hours chart, the technical indicators have managed to correct the extreme oversold readings, but are losing their upward momentum below their mid-lines, whilst the price is far below its moving averages, all of which maintains the risk towards the downside."

BOJ / Semi-Annual Outlook preview: What to expect in USD/JPY?

USD/JPY has been up to test the 200 DMA at 121.03 today and indeed breached this key level with some conviction 121.47 at the end of last week. We have since been in consolidation within a relatively wide 100 pip range taking on the FOMC statement this week, pro greenback, while awaiting the BoJ interest rate decision and Semi-Annual Outlook.
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