- The rise of the euro fades after the impulse of the ECB.
- The yen soars amid a pullback in US yields.
The EUR / JPY has peaked during the American session at 129.63, the highest level since November 19, after the European Central Bank meeting. During the last hour, the pair has turned sharply and has fallen to 128.50, turning negative on the day amid a rally in the Japanese yen.
The JPY has strengthened amid a drop in US yields. Despite signals from the Fed on Wednesday of three possible rate hikes in 2022, Treasuries rose on Thursday. In the last few hours, the 10-year bond yield hit a new low at 1.42%, weighing on USD / JPY.
Earlier in the day, the ECB has left interest rates unchanged and announced the reduction of its bond purchases, mainly in line with expectations. The euro has risen moderately, but then has lost momentum.
Bullish but …
EUR / JPY continues to move away from the recent low, but the current turn to the downside shows that the recovery is choppy. If the EUR / JPY falls back below 128.30, it would weaken the short-term outlook.. On the bright side, EUR / JPY needs a daily close above 129.20 to clear the way for additional gains.
EUR / JPY technical levels
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