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EUR/JPY pops and drops after BOJ’s Christmas gift

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/JPY cross jumped to 133.77 levels after BOJ’s fresh easing program caught markets by surprised, but quickly erased entire gains to trade at 132.50.

    Back below hourly 200-MA

    The cross has trimmed gains to trade below its hourly 200-MA at 133.27 levels. The sell-off in Yen proved to be short-lived as the spike in the Japanese benchmark Nikkei index was quickly undone. Meanwhile, the S&P futures have stayed in red despite the BOJ’s surprise, which is supporting the Yen as well.

    As of now, the cross is trading at 132.85 levels; up only 0.12% on the day. The pair could see another spike as prospects of a fresh JPY selling is high in Europe.

    EUR/JPY Technical Levels

    The immediate resistance is seen at 133.27 (hourly 200-MA), above which the gains could be extended to 134.20 (200-DMA). A break higher would expose 135.14 (38.2% of 149.79-126.09). On the other hand, a break below 132.50 (daily low) would expose 131.69 (23.6% of 149.79-126.09).
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