OctaFX | OctaFX Forex Broker
Open trading account

EUR/JPY: Bears fight back control as BOJ stands pat

FXStreet (Mumbai) - The EUR/JPY cross resumed its downside momentum, revering a temporary rebound seen yesterday, as the yen bulls remain in complete control following the steady monetary policy decision announced by the BOJ.

EUR/JPY: Rejected at 133 handle

Currently, the EUR/JPY pair loses -0.36% to 132.49, recovering slightly from session lows struck at 132.26 immediately after the BOJ policy statement. The cross in the EUR/JPY came under renewed selling pressure and dropped more than 50-pips after the BOJ’s on-hold policy decision bolstered the Japanese currency across the board.

However, further downside in EUR/JPY remains cushioned as the BOJ is expected to release its semi-annual outlook on the Japanese economy at 6GMT, with wide expectations of the central bank revising lower CPI and GDP forecasts, which may dampen the sentiment around the yen.

While the EUR/USD remains almost unchanged and awaits fresh incentives from a batch of significant economic data from the US due for release later today. While the Fed’s preferred inflation gauge remains the main highlight.

EUR/JPY Technical Levels

To the upside, the next resistance lies at 133.01/133 (Today’s High + round number), above which it could extend gains to 133.59 (Oct 28 High). To the downside, the cross finds immediate support at 132.26/132 (Today’s Low + round number), below that 131.57 (Oct 29 Low), could act as a major support.

BOJ out of the way, Kuroda presser up next

Following the decision by the BOJ to keep its monetary policy unchanged, vote 8-1, expanding its monetary base at a pace of Y80 trln/yr, the focus is now shifted to BOJ Governor Kuroda presser.
Read more Previous

AUD impacting businesses negatively - NAB Business Survey

Research Team at NAB, note that despite the degree of AUD depreciation since mid-2014, there is actually a higher proportion of firms in the survey indicating a negative impact from the current level of the AUD (around a third of firms).
Read more Next
Start livechat