EUR/JPY reverses a BOJ-led spike to 132.30

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR/JPY cross quickly reversed almost 100-pips and now consolidates the upside on the 131 handle, after the BOJ surprised markets with negative interest rate.

    EUR/JPY back below 100-DMA at 131.80

    Currently, the EUR/JPY pair rises over 1% to 131.27, retreating sharply from daily highs reached at 132.30. The cross in the EUR/JPY witnessed sharp moves as the yen was heavily smashed after the BOJ roll-out further easing, this time by slashing interest rate to -0.1% while keeping the QQE plan unchanged.

    On the other side, the EUR/USD pair trades modestly flat awaiting fresh cues from the Euro zone CPI and US GDP numbers due later today. Meanwhile, next on tap remains the BOJ press conference, with Kuroda’s comment likely to grab a lot of attention.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 131.80 (100-DMA), above which it could extend gains to 132.30 (daily high). To the downside, the cross finds immediate support at 130.62 (50-DMA), below that 130 (round number), could act as a major support.
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