- EUR/JPY trims biggest daily loss in five weeks and stumbles after BoJ verdict.
- The entity left the benchmark rate and YCC policy unchanged, while adjusting to market forecasts.
- Sustained trading beyond the 100 SMA, monthly support line keeps buyers hopeful.
- The weekly resistance line is the key to reaching new monthly highs.
The EUR/JPY pair remains slightly bid above 146.00, despite Bank of Japan (BoJ) induced volatility, as it prepares for the fifth consecutive weekly rally on Friday.
The BoJ matched broad market expectations by keeping its benchmark rate at -0.1% and practicing Yield Curve Control (YCC) to defend 10-year Japanese Government Bond (JGB) yields near of 0.0%. However, it is noteworthy that the Japanese central bank also cited expectations of economic recovery despite citing widespread fears, which could have challenged EUR/JPY buyers.
Still, EUR/JPY prices remain well above the 1-month support line and 100 SMA support amid a recent RSI (14) recovery and MACD bearish bias reversal. .
As a result, buyers of the pair are ready to challenge the weekly resistance line, around 147.50, before targeting all-time highs since December 2014, currently around 148.40. In doing so, the 2014 high near 149.80 and the psychological magnet of 150.00 will be in the crosshairs.
Alternatively, the mentioned support line and the 100 SMA, near 145.00 and 144.80 in that order, will precede the high from earlier in the month around 144.10 and the 144.00 threshold to challenge the bears.
EUR/JPY: Four-hour chart
Trend: More uploads expected
Source: Fx Street
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