EUR/JPY reaches strongly oversold levels at the 156.00 area

Hopes that the BoJ will exit its-ultra-loose policy have boosted the Yen.
BoJ governor Ueda meets the Japanese PM after discussing options for a major policy shift.
The Euro might see some recovery from heavily oversold levels.

Guillermo Alcala FXStreet

The Euro extended losses on Thursday, with the Japanese Yen boosted by speculation about a BoJ pivot which has pushed the pair to two-month lows ruth below 156.00, with RSI showing oversold levels in most timeframes.

Ueda’s comments fuel hopes of a BoJ pivot

Investors have ramped up bets that the Bank of Japan would be ready to put an end to its negative rate policy after Governor Ueda commented the diverse options available to exit its ultra-loose policy.

Somewhat later the head of the Japanese Central Bank visited Prime Minister Kishida, which boosted hopes that the bank might signal the policy shift at December’s meeting.

In contrast, the dovish remarks from ECB member and Governor of the Bank of France, François Villeroy have heightened hopes that the European Central Bank has reached its terminal rate, adding negative pressure on the Euro.

Technical indicators show the pair under strong bearish pressure although the strongly overbought levels allow for a corrective rebound. Resistances are at 157.00 and 157.75. Supports remain at 155.55 and 154.20.

Technical levels to watch

EUR/JPY

Overview
Today last price	156.34
Today Daily Change	-2.26
Today Daily Change %	-1.42
Today daily open	158.6

Trends
Daily SMA20	161.93
Daily SMA50	159.87
Daily SMA100	158.73
Daily SMA200	153.9

Levels
Previous Daily High	159.12
Previous Daily Low	158.38
Previous Weekly High	163.72
Previous Weekly Low	159.65
Previous Monthly High	164.31
Previous Monthly Low	159.07
Daily Fibonacci 38.2%	158.67
Daily Fibonacci 61.8%	158.84
Daily Pivot Point S1	158.28
Daily Pivot Point S2	157.96
Daily Pivot Point S3	157.55
Daily Pivot Point R1	159.02
Daily Pivot Point R2	159.44
Daily Pivot Point R3	159.76

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

AUD/USD remains confined in a range above 0.7100

AUD/USD extends its consolidative price move above 0.7100 through the Asian session on Tuesday, shrugging off hawkish comments from RBA Assistant Governor Sarah Hunter as traders keenly await the crucial Trump-Xi summit later this week. Meanwhile, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, capping spot prices.

USD/JPY bulls seem cautious below 157.50 as JPY intervention risks loom

USD/JPY consolidates below mid-157.00s during the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. At the same time, the US Dollar retains its bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, acting as a tailwind for the pair.

Gold benefits from falling US bond yields; remains below $4,400 amid bullish USD

Gold regains positive traction during the Asian session on Tuesday, though it lacks bullish conviction and remains below $4,400. Falling oil prices ease inflation fears, dragging US bond yields lower and supporting the non-yielding yellow metal. Meanwhile, the Fed's hawkish stance, along with escalating Middle East tensions, keeps the US Dollar near its highest level since late July and acts as a headwind for the bullion.

Ethereum rallies above $2,700 as investors shrug off bearish sentiment

Ethereum (ETH) climbed above $2,700 on Monday after investors defended the realized price level despite negative sentiment over the Clarity Act's failure and the Federal Reserve rate hike. After the Clarity Act failed to advance in the Senate, ETH dipped below $2,400 last week. But right below that price is the top altcoin's realized price, or average on-chain cost basis, at $2,310.

The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.