FXStreet (Mumbai) – The yen bulls took total control during the later Asian/early European trades, knocking-off EUR/JPY to fresh one-week lows below 139 handle, following Bank of Japan’s (BOJ) Governor Kuroda’s pro-JPY comments which saw the yen strengthen by nearly 200 pips.
EUR/JPY dives from 140.52
Currently, the EUR/JPY pair trades -1.07% lower at 139.79, retreating from fresh weekly lows reached at 138.59 last hours. EUR/JPY witnessed a sharp sell-off after BOJ Kuroda’s optimistic comments on the domestic currency led to aggressive yen buying across the board.
Kuroda said on Wednesday, “yen may not weaken much further on a real effective exchange rate basis.” While he also said that the correction of the yen from its excessive highs is a plus for Japan’s exporters and helps the economy overall.
However, the losses were restricted largely on the back of stronger EUR/USD after broad USD sell-off, triggered by sudden buying interest seen in the yen.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 139.50 levels and above which it could extend gains 140.18 levels. To the downside immediate support might be located at 138 below that at 137.30 levels.
(Market News Provided by FXstreet)