EUR/JPY trims gains, back below 132 post-BOJ

By FXStreet FXStreet (Mumbai) – The EUR/JPY cross failed to sustain at higher levels and gave back most gains, after the JPY bulls fought back control after BOJ stands pat on monetary policy.

EUR/JPY slips back below 5-DMA

Currently, the EUR/JPY pair trades 0.07% higher at 131.85, retreating sharply from 132.26 highs shortly after the policy announcement. EUR/JPY ran through fresh offers and dropped to 10-DMA at 131.78 after the yen spiked against the greenback on the back of on hold policy stance by the BOJ.

The central bank has left policy steady for over a year now, despite inflation sinking to near-zero levels in recent months and the economy slipping back into recession.

However, offering some respite to the bulls, the EUR/USD remains firmer on its recovery mode after the FOMC minutes triggered a technical correction in the greenback.

Later in the day, attention now shifts to the BOJ press conference and a set of the US macro updates for further cues on the cross.

EUR/JPY Technical Levels

To the upside, the next resistance lies at 132.26 (Nov 16 High/ Today’s High), above which it could extend gains to 132.66 (Nov 13 High). To the downside, the cross finds immediate support at 131.52 (5-DMA), below that …read more

Source:: FX Street