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EUR/JPY trims gains, back below 132 post-BOJ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The EUR/JPY cross failed to sustain at higher levels and gave back most gains, after the JPY bulls fought back control after BOJ stands pat on monetary policy.

    EUR/JPY slips back below 5-DMA

    Currently, the EUR/JPY pair trades 0.07% higher at 131.85, retreating sharply from 132.26 highs shortly after the policy announcement. EUR/JPY ran through fresh offers and dropped to 10-DMA at 131.78 after the yen spiked against the greenback on the back of on hold policy stance by the BOJ.

    The central bank has left policy steady for over a year now, despite inflation sinking to near-zero levels in recent months and the economy slipping back into recession.

    However, offering some respite to the bulls, the EUR/USD remains firmer on its recovery mode after the FOMC minutes triggered a technical correction in the greenback.

    Later in the day, attention now shifts to the BOJ press conference and a set of the US macro updates for further cues on the cross.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 132.26 (Nov 16 High/ Today’s High), above which it could extend gains to 132.66 (Nov 13 High). To the downside, the cross finds immediate support at 131.52 (5-DMA), below that 131.35 (Daily S1), could act as a major support.
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