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

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    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.
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