Tuesday, September 15, 2015

EUR/JPY breaks through 136 on BOJ

FXStreet (Mumbai) - The cross in the EUR/JPY surrendered 136 barrier and dipped to lows below it as the yen garnered some strength after the BOJ left its monetary policy settings unadjusted.

BOJ lifts the Yen

Currently, the EUR/JPY pair trades -0.13% lower at fresh session lows of 135.83, falling sharply from 136.20 levels post BOJ decision. The Japanese currency smashed the euro to fresh session lows after the BOJ maintained its monetary policy path with its pace of asset purchases unchanged.

The yen received fresh impetus after the BOJ policy statement disappointed JPY bears, who had argued for a case in favour of further easing.

However, the losses in EUR/JPY were curtailed on back of a stronger euro versus the US dollar amid resurfacing risk-off sentiment.

Meanwhile, markets now look forward to the BOJ presser for further hints on the monetary policy outlook, which may have major impact on the cross.

EUR/JPY Technical Levels

To the upside, the next resistance is located at 136.41 (Today’s High) levels and above which it could extend gains to 136.63 (Aug 28 High) levels. To the downside immediate support might be located at 135.37 (Aug 26 Low) below that at 135 levels.
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