1. Hello Guest Click here to check FX Binary Point Financial Directory

EUR/JPY revisits daily lows on BOJ’s Kuroda

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - A renewed bout of buying interest sprung around the yen following BOJ Governor’s clarification on the BOJ latest moves and pushed EUR/JPY back towards daily lows, before trimming losses to now trade above 50-DMA at 132.29.

    EUR/JPY bounces-off session lows

    Currently, the EUR/JPY pair trades -0.23% at 132.38, quickly retreating from fresh session lows struck at 132.29 last minutes. The recovery in the EUR/JPY post-BOJ decision stalled just ahead of the mid-point of 132 handle and the prices fell back sharply to 50-DMA at 132.29, after the yen was caught by a fresh bid-wave on BOJ Governor Kuroda’s comments at the presser.

    BOJ Kuroda clarified on the latest measures introduced by the central bank at its policy meeting earlier today and noted that today’s steps were not additional monetary easing but only a ‘quick response to risks and also to ensure that QQE can be expanded swiftly if needed.’

    Earlier on the day, the BOJ kept its monetary policy on hold, although announced additional JPY 300B in annual ETF purchases beginning in April which would offset a program that started in 2002 to buy financial shares. The sale of the shares purchased previously will be conducted over a period of ten years starting April next year.

    The BOJ’s new surprise move caught markets off-guard and hence the cross witnessed some wild swings, with the yen bulls taking back control and drags the cross lower. However, the downside remains cushioned on the back of a corrective rally seen in the EUR/USD pair.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 133.01 (1h 100-SMA), above which it could extend gains to 133.76 (daily high). To the downside, the cross finds immediate support at 132.01 (daily S2), below that 131.57 (Oct 29 Low), could act as a major support.
    For more information, read our latest forex news.

Share This Page