EUR/JPY finds some support above 161.00 level, focus on BoJ rate decision

  • EUR/JPY rises towards the 162.00 level after finding support around 161.00 during the European session on Friday.
  • Kazuo Ueda, governor of the BoJ, said policymakers will discuss whether the outlook is favorable enough to gradually withdraw massive monetary stimulus.
  • The ECB's Phillip Lane said March data showed progress in inflation but the ECB needs more time to decide when to ease policy.

The crossing EUR/JPY attracts some sellers above 161.00 support level during the early hours of the European session on Friday. The cautious sentiment in the market offers some support to the Japanese Yen (JPY) against the Euro (EUR). However, The lower expectations that the BoJ will soon abandon its negative rates could limit the fall of the cross. Markets await the Bank of Japan (BoJ) interest rate decision in search of new catalysts. The cross is currently trading near 161.93, up 0.43% on the day.

Uncertainty surrounding the Bank of Japan's next policy decision is likely to weaken the Yen and create a headwind for the EUR/JPY cross. The governor of the BoJ, Kazuo Ueda stated that policymakers will debate whether the outlook is favorable enough to gradually withdraw massive monetary stimulus. Meanwhile, rising geopolitical tension in Europe could boost safe-haven monetary flows and benefit the Yen. Western officials reported Friday that Russia has moved tactical nuclear weapons from its borders to neighboring Belarus, several hundred kilometers closer to NATO territory.

Regarding the Euro, the chief economist of the European Central Bank (ECB), Philip Lane declared that the central bank needs time to get a clearer picture of inflationary pressures in June. ECB President Christine Lagarde stated during her March meeting press conference that the first rate cuts are likely to take place in June and not April.

Friday's developments are unlikely to move the market as investors await next week's BoJ policy meeting. The outcome of the BoJ interest rate decision could give a clear direction to the EUR/JPY cross in the short term.

EUR/JPY technical levels

Panorama
Today's Latest Price 161.93
Today's Daily Change 0.69
Today's Daily Change % 0.43
Today's Daily Opening 161.24
Trends
20 Daily SMA 162.29
SMA of 50 Daily 160.98
SMA of 100 Daily 160.13
SMA of 200 Daily 158.57
Levels
Previous Daily High 161.92
Previous Daily Low 161.11
Previous Weekly High 163.52
Previous Weekly Low 160.56
Previous Monthly High 163.72
Previous Monthly Low 158.08
Daily Fibonacci 38.2% 161.42
Daily Fibonacci 61.8% 161.61
Daily Pivot Point S1 160.93
Daily Pivot Point S2 160.62
Daily Pivot Point S3 160.13
Daily Pivot Point R1 161.74
Daily Pivot Point R2 162.23
Daily Pivot Point R3 162.54

Source: Fx Street

You may also like

South Korea’s billing bills
World
Flora

South Korea’s billing bills

A bill was approved yesterday, Wednesday, by South Korea, which prohibits the use of mobile phones in the classrooms, as

Waking Kit transferred 750 BTC to Binance
Top News
David

Waking Kit transferred 750 BTC to Binance

Against the background of correction, large holders of bitcoin and Ethereum demonstrate conflicting strategies. Some fix profit, others buy on