Wednesday, October 28, 2015

EUR/JPY sidelined below 133.00

FXStreet (Edinburgh) - EUR/JPY is extending its weekly decline on Wednesday, against a backdrop of a cautious tone from investors ahead of the FOMC and the BoJ.

EUR/JPY looks to Fed, BoJ

The FOMC gathering is due today and it will be the main driver of sentiment in the near term, as the prospects of a lift-off in December will be close watched by investors.

In addition, the safe haven JPY will be under scrutiny in light of the BoJ meeting on Friday. Speculations of further easing by the central bank have been growing bigger amongst traders as of late, particularly since the ECB has left the door open for additional stimulus (most likely to be announced at its December meeting).

EUR/JPY significant levels

The cross is now losing 0.14% at 132.90 and a breach of 132.18 (monthly low Sep.8) would expose 131.79 (61.8% Fibo of 126.05-141.07) and finally 130.12 (low jan.26). On the upside, the initial barrier lies at 133.56 (50% Fibo of 126.05-141.07) followed by 134.50 (200-day ma) and then 135.00 (psychological level).
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