22 May 2015
EUR/JPY pares gains, muted circa 134.50 on BOJ
FXStreet (Mumbai) - EUR/JPY wiped out gains and trades flat in the mid-Asian session, after the Bank of Japan’s (BOJ) unchanged monetary policy decision as widely expected. While the yen received fresh impetus as the central bank upgraded economic outlook for the rest of this year.
EUR/JPY drops from 134.67
Currently, the EUR/JPY pair flat at 134.53, having posted fresh session highs at 134.67 levels. EUR/JPY pared gains and trades muted as the yen strengthened after BOJ decided to leave its monetary policy unchanged while maintaining their optimistic outlook for inflation even as prices levels remain far below the bank's target.
"With regards to the outlook, Japan's economy is expected to continue recovering moderately," according to the bank's policy statement on Friday.
On the other hand, the downside in EUR/.JPY remains capped as the shared currency remains broadly stronger ahead of ECB Chief Draghi’s speech and German Ifo figures due to be released later in the European session. While BOJ press conference will also be closely watch for any new surprises by Kuroda.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 135 levels and above which it could extend gains 135.83 (May 19 High) levels. To the downside immediate support might be located at 134.23 (May 21 Low) below that at 133.93 (May 20 Low) levels.
EUR/JPY drops from 134.67
Currently, the EUR/JPY pair flat at 134.53, having posted fresh session highs at 134.67 levels. EUR/JPY pared gains and trades muted as the yen strengthened after BOJ decided to leave its monetary policy unchanged while maintaining their optimistic outlook for inflation even as prices levels remain far below the bank's target.
"With regards to the outlook, Japan's economy is expected to continue recovering moderately," according to the bank's policy statement on Friday.
On the other hand, the downside in EUR/.JPY remains capped as the shared currency remains broadly stronger ahead of ECB Chief Draghi’s speech and German Ifo figures due to be released later in the European session. While BOJ press conference will also be closely watch for any new surprises by Kuroda.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 135 levels and above which it could extend gains 135.83 (May 19 High) levels. To the downside immediate support might be located at 134.23 (May 21 Low) below that at 133.93 (May 20 Low) levels.