EUR/JPY jumps to fresh daily peak, around mid-169.00s after BoJ policy decision

EUR/JPY builds on its intraday positive move after the BoJ manintains the staus quo.
The BoJ left interest rates unchanged and also decided not to reduce bond purchases.
Political uncertainty in Europe could undermine the Euro and cap gains for the cross.

Haresh Menghani FXStreet

The EUR/JPY cross attracts some dip-buying during the Asian session on Friday and reverses a part of the previous day's retracement slide from over a one-week high – levels beyond the 170.00 mark. The intraday positive move picks up pace after the Bank of Japan (BoJ) announced its policy decision, lifting spot prices to mid-169.00s, or a fresh daily peak in the last hour.

As was widely expected, the BoJ decided to leave interest rates unchanged at the conclusion of its June policy meeting and did not offer any cues about the timing of the next rate increase. Furthermore, the central bank might have disappointed some market participants anticipating an announcement regarding a potential reduction in the monthly bond purchases. This, along with a generally positive risk tone, undermines the safe-haven Japanese Yen (JPY) and provides a goodish lift to the EUR/JPY cross.

Meanwhile, a snap election call in France has sparked wider political concerns in the Eurozone. This might continue to act as a headwind for the shared currency and keep a lid on any meaningful appreciating move for the EUR/JPY cross. Hence, it will be prudent to wait for strong follow-through buying and sustained breakout through a short-term trading range held over the past two weeks or so before placing fresh bullish bets. Traders now look to comments by BoJ Governor Ueda Kazuo for a fresh impetus.

EUR/JPY

Overview
Today last price	168.85
Today Daily Change	0.24
Today Daily Change %	0.14
Today daily open	168.61

Trends
Daily SMA20	169.64
Daily SMA50	167.51
Daily SMA100	164.81
Daily SMA200	161.84

Levels
Previous Daily High	170.14
Previous Daily Low	168.28
Previous Weekly High	170.89
Previous Weekly Low	168.01
Previous Monthly High	170.8
Previous Monthly Low	164.02
Daily Fibonacci 38.2%	168.99
Daily Fibonacci 61.8%	169.43
Daily Pivot Point S1	167.88
Daily Pivot Point S2	167.15
Daily Pivot Point S3	166.03
Daily Pivot Point R1	169.74
Daily Pivot Point R2	170.86
Daily Pivot Point R3	171.59

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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