EUR/JPY Price Analysis: Soars to near 141.00 on unchanged BoJ policy
- EUR/JPY has delivered a perpendicular north-side move on the unchanged BoJ policy.
- BoJ Kuroda has kept the interest rate unchanged at -0.1% and the 10-year JGBs target at around 0%.
- The cross has surpassed the 200-period EMA at 140.00 in one go and is expected to extend gains further.
The EUR/JPY pair has displayed a juggernaut run as the Bank of Japan (BOJ) has kept the monetary policy unchanged. BoJ Governor Haruhiko Kuroda has kept the interest rate unchanged at -0.1% and the 10-year Japan Government bonds (JGBs) target at around 0%.
Investors are expecting cues about an exit from the decade-long ultra-easy monetary policy, however, an unchanged policy stance has weakened the Japanese Yen.
On an hourly scale, EUR/JPUY has recovered dramatically after forming a Triple Bottom chart pattern. The formation of the aforementioned chart pattern around 138.00 is demonstrating a sheer bullish reversal. The cross has surpassed the 200-period Exponential Moving Average (EMA) at 140.00 in one go and is expected to extend gains further, considering the momentum in the north-side move.
The Relative Strength Index (RSI) (14) has aggressively entered into the bullish range of 60.00-80.00, which indicates more upside ahead.
After a run-up, a minor corrective move to near January 5 low at 139.97 will be a decent opportunity of bargain buy for the market participants, which will drive the asset towards January 6 high at 141.45 followed by December 28 high around 143.00.
On the flip side, a downside move below the previous week’s low at 138.00 will drag the cross towards January 3 low at 137.39. A slippage below the latter will expose the asset for more downside towards April 14 low at 135.51.
EUR/JPY hourly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
