EUR/JPY Tumbles Below 123.00 Level

EUR/JPY Tumbles Below 123.00 Level

28 April 2016, 14:40
Roberto Jacobs

EUR/JPY Tumbles Below 123.00 Level

The EUR/JPY pair tumbled from early morning highs of 126.47 all the way to 122.54 and has failed to register any meaningful recovery even after such steep fall.

The BoJ disappointed markets by holding its monetary policy unchanged, squashing hopes of additional stimulus that would have further assisted global risk-on rally. The pair is now within striking distance of 122.53 level, its lowest daily closing since April 2013.

Technical levels to watch

An extended selling pressure below 122.50 support is likely to eye April month lows support near 121.70 area. Failure to bounce-off these immediate support levels now seems to open room for continuation of the pair's downward trajectory all the way to 120.00 psychological mark support.

Meanwhile on the upside, 123.00-123.15 zone seems to invited fresh offer, which if absorbed could lift the pair back above 124.00 handle towards 124.50 strong horizontal resistance area.


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