Thursday, November 19, 2015

EUR/JPY extends post-FOMC minutes recovery, nears 132

FXStreet (Mumbai) - A renewed bout of buying interest is seen around the EUR, now pushing EUR/JPY to fresh session highs on its way to the hourly 200-SMA at 131.98.

EUR/JPY extending beyond 5-DMA

Currently, the EUR/JPY pair trades 0.13% higher at 131.94, testing hourly 200-SMA just shy of 132 barrier. The EUR/JPY cross found renewed bids neat 5-DMA at 131.52 and extends its recovery from post-FOMC slump towards 132 handle.

The cross, initially spiked in a knee-jerk reaction to the Fed minutes, although gave up the tops and dropped to 131.26 lows after the minutes were read less hawkish and offered no commitment towards a Dec rate rise, in line with the Oct 28 Fed meeting statement.

However, the gains remain in check on the back of a stronger yen against the USD, as attention now shifts to the BOJ policy decision due later this session. The BOJ is likely to keep the policy steady today, which may turn out to be yen positive.

EUR/JPY Technical Levels

To the upside, the next resistance lies at 131.98 (1h 200-SMA), above which it could extend gains to 132.26 (Nov 13 High). To the downside, the cross finds immediate support at 131.52 (5-DMA), below that 131.35 (Daily S1), could act as a major support.
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