EUR/JPY: Holds below key hurdle, Kuroda's dovish talk fails to inspire Yen bears

  • EUR/JPY has recovered from session lows but is flashing marginal losses.
  • Yen is showing resilience despite dovish comments by BOJ's Kuroda. 
  • Technical charts show 122.50 is the level to beat for the bulls. 

EUR/JPY has recovered from session lows but remains below key resistance at 122.50 with markets refusing to offer yen despite dovish comments by Bank of Japan's governor Kuroda

The pair is currently trading near 122.35, representing marginal losses on the day, having hit a low of 122.20 earlier today. 

Kuroda reiterates dovish bias

BOJ's Kuroda was out on the wires a few minutes before press time, stating that the central bank would not hesitate to take additional easing steps if required. 

The central bank head added further that long-term rates will remain at current or lower levels alongside QQE with yield curve control for an extended period. 

So far, however, Kuroda's dovish talk has been ignored by markets. Moreover, the bank's dovish bias is already well known and priced in. 

Focus on EU-US trade tensions

European Union’s new trade chief Phil Hogan is due to meet US Trade Representative Robert Lighthizer and other American officials during a Jan. 14-16, according to Bloomberg. 

The two sides will be looking to settle old disputes that have been revived recently and the fundamental disagreement over trade policy.

Hosuk Lee-Makiyama, director of the European Centre of International Political Economy in Brussels, thinks there will be a lot of fireworks before any underlying progress is made in resolving U.S.-EU policy differences over trade. 

The uncertainty could weigh over the single currency. 

122.50 is a key hurdle

The pair has faced rejection at or above 122.50 multiple times over the last four weeks. 

On Tuesday, the JPY ran into offers around 122.76 and closed at 122.38, marking a bullish failure above 122.50. 

So, 122.50 is the level to beat for the bulls. A close higher would imply a continuation of the rally from September lows near 116.00. 

Technical levels


Today last price 122.36
Today Daily Change -0.02
Today Daily Change % -0.02
Today daily open 122.38
Daily SMA20 121.61
Daily SMA50 120.96
Daily SMA100 119.98
Daily SMA200 120.95
Previous Daily High 122.77
Previous Daily Low 122.18
Previous Weekly High 121.85
Previous Weekly Low 120.17
Previous Monthly High 124.2
Previous Monthly Low 119.98
Daily Fibonacci 38.2% 122.4
Daily Fibonacci 61.8% 122.54
Daily Pivot Point S1 122.11
Daily Pivot Point S2 121.85
Daily Pivot Point S3 121.52
Daily Pivot Point R1 122.71
Daily Pivot Point R2 123.03
Daily Pivot Point R3 123.3



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.


GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.


XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News