EUR/JPY clocks one-week low ahead of BOJ rate decision

EUR/JPY is looking to extend Monday’s sharp losses ahead of the Bank of Japan rate decision. The cross clocked a one-week low of 121.38 levels.

Offered above 50-DMA

The cross failed to hold above the upward sloping 50-DMA level of 121.71 earlier today. Overnight losses on the Wall Street and fears that the BOJ could be forced to taper its QE program during the Trump Presidency strengthened the bid tone around the Yen.

Meanwhile, Euro’s failure to hold above 1.07 handle also ensures the cross remains on the back foot ahead of Trump speech.

EUR/JPY Technical Levels

A break below 121.19 (Jan 12 low) would expose support at 120.54 (Jan 17 low), under which losses could be extended to 120.13 (38.2% Fib of Trump rally). On the other hand, a break above 121.71 (50-DMA) would open doors for 122.04 (5-DMA + 10-DMA) and 122.95 (Jan 20 high).