24 Feb 2016
Kuroda helps EUR/JPY recover losses
BOJ’s Kuroda indirectly hinted at a possibility of more QE, helping the EUR/JPY recover from the lows to hit a daily high of 123.62 levels.
Hovers around 123.40
The cross currently trades around 123.40, with moderate gains in the European equity index futures supporting the pair. The offered tone around JPY gathered pace after Kuroda said move to negative rates does not put a limit to what can be done with the bank’s QQE program.
Going ahead, the pair remains at the mercy of the overall market sentiment. Speculation that Kuroda could do more could keep the Yen under pressure as well.
EUR/JPY Technical Levels
A break below the psychological figure of 123.00 would open doors for a slide to a major support seen on the monthly chart at 121.03 (May 2011 high). On the other hand, a recovery above 123.33 (Apr 2011 high) would expose the 5-DMA resistance at 124.40.
Hovers around 123.40
The cross currently trades around 123.40, with moderate gains in the European equity index futures supporting the pair. The offered tone around JPY gathered pace after Kuroda said move to negative rates does not put a limit to what can be done with the bank’s QQE program.
Going ahead, the pair remains at the mercy of the overall market sentiment. Speculation that Kuroda could do more could keep the Yen under pressure as well.
EUR/JPY Technical Levels
A break below the psychological figure of 123.00 would open doors for a slide to a major support seen on the monthly chart at 121.03 (May 2011 high). On the other hand, a recovery above 123.33 (Apr 2011 high) would expose the 5-DMA resistance at 124.40.