The EURJPY cross was trading marginally higher on the day and was hovering around 132.20 during the London session, where the 200 day moving average is located.
Earlier in the day, the bank of Japan Governor Kuroda spoke, reiterating the central bank’s inflation targets, and their intent to reach them with continued monetary easing policies. His remarks undermined the yen.
Investors will focus on today’s ECB accounts from the latest ECB monetary policy decision. Should the accounts sound hawkish, the euro could be bid. However, the ECB appears to be stuck in the dovish tone, so volatility could be elevated after the release.
The cross managed to get back above the strong support of 131.50 and while it stays above, the short term outlook looks slightly more bullish. The price is now trying to settle above the 200 day moving average. The first resistance is located at this week’s highs around 132.60 and if broken, the single currency could approach the 100 day moving average at 133.00.
On the other hand, the support is seen near 132.00 and if not held, the cross might deteriorate to the mentioned zone around 131.50. In all cases we strongly recommend to have rigorous money and risk management.
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