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28 Mar 2013
Forex: EUR/JPY sideways just below 121.00
FXstreet.com (Barcelona) - After going as low as 119.75 in mid-European morning, the EUR/JPY bounced back above the 120.00 handle and fully retraced its losses. The market has now been moving sideways between 120.70 and the 121.00 mark, with no particular direction defined yet.
The next BoJ meeting is next week and much pressure has been put on Governor Kuroda’s shoulders. Nomura Strategists see the market expecting a change in BoJ policy framework as early as next week, the consolidation of two JGB buying operations (APP and Rinban) and the scrap of banknote rule next week. Further, JPY10trn of additional asset purchases are expected in 2013, with increase of the duration of JGB purchases to 10y expected to be announced.
Mataf.net analysts point to resistances at 120.75, 121.50 and 121.85, while supports are at 120.15, 119.75 and 118.90.
The next BoJ meeting is next week and much pressure has been put on Governor Kuroda’s shoulders. Nomura Strategists see the market expecting a change in BoJ policy framework as early as next week, the consolidation of two JGB buying operations (APP and Rinban) and the scrap of banknote rule next week. Further, JPY10trn of additional asset purchases are expected in 2013, with increase of the duration of JGB purchases to 10y expected to be announced.
Mataf.net analysts point to resistances at 120.75, 121.50 and 121.85, while supports are at 120.15, 119.75 and 118.90.