EUR/JPY: Nasty 300-Pips Fall as BOJ Stands Pat

EUR/JPY: Nasty 300-Pips Fall as BOJ Stands Pat

28 April 2016, 06:15
Roberto Jacobs
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EUR/JPY: Nasty 300-Pips Fall as BOJ Stands Pat

The cross in the EUR/JPY halted more than 300-pips free-fall to near 123 handle following BOJ’s unchanged monetary policy stance, which bolstered the JPY bulls across the board.

EUR/JPY re-takes 124 handle

The EUR/JPY pair now drops -1.78% to 123.89, recovering quickly from a dip to fresh weekly lows reached at 123.17 post-BOJ announcement. The EUR/JPY cross fell sharply from above 126 handle after yen picked-up significant strength against its US counterpart on BOJ’s unchanged policy decision, what came as a surprise to the markets.

However, a better bid EUR/USD aids a minor bounce seen in the EUR/JPY cross in the last hour. Although the recovery looks fragile as fresh round of selling is expected once again, when the BOJ Chief speaks at the presser due in early Europe.

EUR/JPY Levels to consider

The pair has an immediate resistance at 124.72/125 (daily S3/ psychological levels) and from there to 125.31 (5-DMA). On the flip side, support is seen at 123.17 (post-BOJ low) below which it could extend losses to towards 122.52/50 (Apr 7 Low).


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