EUR JPY saw very sharp moves
9/21/2016 12:46:27 PM
EUR/JPY saw extremely sharp moves and shoot down 114.00 handle, after the Japanese central bank made no changes to its interest rates, ETF purchases and bond buying programme, even though introduced new policy measures to control the yield curve.
The EUR/JPY pair rallies +0.84% at 114.40, eyeing for a test of 115.00 handle. The EUR/JPY cross dropped as low as 112.60 on immediate response to the BOJ decision, as the JPY gained on no rate cut from the central bank.
In the meantime, moderate losses in the EUR/USD pair fail to hinder the bullish momentum in the EUR/JPY cross. Though it cannot be said for how long it will stand as the next big event for the fx markets remains the Fed rates decision.
The pair has an immediate persistence at 114.90 and from there to 115.00 On the other hand, support is seen at 133.20 below which it could extend losses to towards 112.60.