The EUR/JPY pair extended losses in Europe to trade below 124.47 (23.6% of 132.29-122.06) after BOJ’s Kuroda squashed hopes of more monetary easing in the near-term.
Offered below hourly 50-MA
The selling pressure gathered pace after the cross dipped below the hourly 50-MA located at 124.73. The greenback is on a recovery mode against most majors, due to which the EUR/USD pair fell below its 50-DMA.
However, Kuroda saved the day for Yen by stating the bank is unlikely to do more right now. Consequently, the cross fell to a low of 124.28 levels and appears on track to test the hourly 100-MA support at 124.18.
EUR/JPY Technical Levels
The immediate support is seen at 124.18 (hourly 100-MA), under which the pair could test hourly 200-MA level of 123.92. A break lower would expose 123.09 (March 2 low). On the other hand, a break above 124.47 (23.6% of 132.29-122.06) would shift risk in favor of a recovery to 125.24 (daily high). Above the same the cross could rise to 125.59 (Friday’s high).
(Market News Provided by FXstreet)