EUR/JPY struggles to hold above 126 as yen jumps post-BOJ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bears take a breather and now allow a tepid-bounce in the EUR/JPY cross as markets digest the latest BOJ rates on-hold policy stance.

    EUR/JPY back above 126 handle

    The EUR/JPY pair trades -0.25% at 126.05, recovering from fresh session lows of 125.97 struck immediately after the BOJ policy announcement. The cross in the EUR/JPY is seen trimming losses and struggles to take on the recovery beyond 126 handle as the yen holds near highs against the greenback as the BOJ hinted at no further easing and kept the negative interest rates steady at -0.1%.

    While on the EUR-side of the equation, the cross remains slightly cushioned as the EUR/USD pair defends mild gains and manages to stay above 1.11 barrier.
    Looking ahead, the next risk event for the cross remains the BOJ Governor Kuroda’s speech at the central bank’s presser due later in early Europe.

    EUR/JPY Levels to consider

    The pair has an immediate resistance at 126.57 (1h 50-SMA/ 5-DMA) and from there to 127/ 127.16 (round number/ 50-SMA). On the flip side, support is seen at 125.70/68 (1h 100-SMA/ 10-DMA) below which it could extend losses to towards 125.09 (1h 200-SMA).
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