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EUR/JPY trims losses after steep drop

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/JPY found support ahead of the 131.00 level and entered a consolidative phase over the last hours, after losing more than 275 pips from daily highs on the back of BoJ move.

    EUR/JPY was rejected from a high of 133.77, for third time in a week, and plummeted all the way to a low of 131.02 before stabilizing. Having recovered slightly, the pair is currently trading at 131.58, recording a 0.80% loss on the day.

    The yen initially reacted negatively, but changed course soon after the Bank of Japan announced some operational tweaks but left the expansion of the BoJ's balance sheet unchanged at JPY 80 trillion a year.

    EUR/JPY key levels

    On the downside, a break below 131.00 would pave the way toward 130.49 (Dec 3, pre-ECB low) and 129.65 (Nov 27 low). On the flip side, resistances in case of bounces are seen at 132.00/02 (psychological level/21-day SMA), 132.84 (50-day SMA) and 133.77 (Dec 11, 16 & 18 highs).
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