EUR/JPY declines ahead of ECB meet

FXstreet.com (Barcelona) - Having rallied into the Asia open yesterday, EUR/JPY has declined overnight, absent a quick push to post a high at 139.29, and is now trading at 138.80, down -0.10% on the days trading.

EUR/JPY floating dirty in between Kuroda speech and ECB meet

Overnight saw a miss for foreign investment in Japanese stocks and bonds, and JPY crosses were led lower by a declining Nikkei. However, an element of support was found at the hourly 200 SMA at 138.68 for EUR/JPY as BoJ Governor Kuroda spoke this morning to reiterate the central banks commitment to QE in persuit of a sustainable objective of 2% inflation. Ahead, eyes are understandably on the ECB interest rate decision and subsequent policy statement and press conference at 12:45 and 13:30 GMT respectively.

What are today’s key EUR/JPY levels?

Hourly RSI at 42 and looking rangebound, while the FXstreet.com Trend Index is showing a strongly bearish outlook. The hourly 200 SMA is flat at 138.70, while the daily 20 EMA is bullish at 136.86. Today’s key pivot point sits at 139.00, with support below at 138.3757 (S1), 137.7988 (S2) and 137.1692 (S3), and resistance ahead at 139.5822 (R1), 140.2118 (R2) and 140.7887 (R3).

Flash: EUR remains resilient ahead of ECB - BTMU

Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the euro continues to remain resilient with the ECB’s trade-weighted index back close to its annual highs from late October.
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BoJ's Kuroda: Easy policy will remain until inflation target sustainably achieved

BoJ Governor Haruhiko Kuroda, who spoke at an economic forum in Tokyo on Thursday, said that the central bank's 2% inflation target would be reached toward the fiscal year 2015. Until then the current easy monetary policy would be maintained, he assured.
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