FXStreet (Edinburgh) - After a brief test of highs near 132.30, EUR/JPY has now deflated to the 131.50 area, where it is now trying to consolidate. EUR/JPY stronger on looser BoJ The cross has quickly jumped to fresh 4-week highs beyond the 132.00 handle after the BoJ has cut its benchmark rate into the negative territory to -0.10%, catching markets off guard and triggering a sharp knee jerk in the Japanese currency. At his press conference, Gobernor H.Kuroda has left the door open for further easing if necessary, adding that the current policy of negative rates does not mean the central bank has reach a limit of JGB purchases. Back to the euro area, EMU’s flash CPI for the current month is due later, with consensus expecting consumer prices to have ticked higher to 0.4%. EUR/JPY levels to consider At the moment the cross is up 1.14% at 131.50 facing the next resistance at today’s high at 132.33 followed by 134.30 (200-day sma) and finally 134.62 (high Dec.4). On the flip side, a breach of 128.48 (20-day sma) would open the door to 126.73 (low Jan.7) and then 126.12 (low Jan.21). For more information, read our latest forex news.