EUR/JPY drops to fresh 5-day lows post-BOJ

The EUR/JPY cross remains on the offers, although trims losses suffered after the yen rallied following the BOJ policy decision.

EUR/JPY tracks USD/JPY lower

The EUR/JPY pair now drops -0.21% to trade at 121.42, having posted fresh five-day lows at 121.30 last hours. The cross extends its downbeat momentum into a second day today, largely on the back of USD/JPY weakness, as the Yen remains strongly bid, despite a status-quo maintained by the BOJ combined with downward revision to its longer-run inflation forecasts.

The BOJ kept the interest rates and the yield curve control target unchanged as widely expected, but extended the debt buying for the loan program by a year.

Later today, the cross will get influenced by the inflation and growth figures due from the Euroland, while before that BOJ Kuroda’s presser, German retail sales data and ECB Draghi’s speech will also have a significant impact on the prices.

EUR/JPY: Technical Levels

Higher side: 121.97 (20-DMA), 122.30/33 (5 & 50-DMA)

Lower side: 121 (round figure), 120.21 (daily S2)