EUR/JPY Drifts Higher To 161.50 Following BoJ Rate Decision

Japanese Money — Stock Photo, Image

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The EUR/JPY cross gathers strength during the early European session on Tuesday. The Bank of Japan (BoJ) expectedly retained its ultra-loose monetary policy at its January meeting while cutting its core inflation forecast for the next fiscal year. At press time, EUR/JPY is trading at 161.50, up 0.23% on the day.

According to a policy statement on Tuesday, the BoJ decided unanimously to keep interest rates at -0.1% and maintain its yield curve control policy that keeps the upper limit for 10-year Japanese government bond yield at 1.0% as a reference. Furthermore, BOJ board members lowered their median growth forecast for core consumer prices to 2.4% for fiscal 2024 starting this April, compared with 2.8% they estimated in October, according to its BoJ quarterly report.

Traders will keep an eye on BoJ Governor Kazuo Ueda's speech during the press conference. Ueda may provide some insights about when and how the 'normalization' process and the transition away from negative interest rates will occur this year. The markets anticipate the Japanese central bank to exit its negative rates regime at its April meeting at the earliest. 

On the Euro front, the European Central Bank (ECB) is likely to maintain its benchmark policy on Thursday as ECB President Lagarde signaled in Davos that the first cut may come in the summer months of 2024. The markets expect the first ECB policy rate cut in April, with a total reduction of 135 basis points (bps) by the end of 2024.  

The Japanese Trade Balance, and HCOB Purchasing Managers Index (PMI) from France, Germany, and the Eurozone, are due on Wednesday. Market participants will closely monitor the ECB monetary policy meeting and press conference on Thursday. These events could give a clear direction and trading opportunities around the EUR/JPY cross. 

 

EUR/JPY

OVERVIEW
Today last price 161.48
Today Daily Change 0.34
Today Daily Change % 0.21
Today daily open 161.14

 

TRENDS
Daily SMA20 158.49
Daily SMA50 159.13
Daily SMA100 158.8
Daily SMA200 156.19

 

LEVELS
Previous Daily High 161.57
Previous Daily Low 160.76
Previous Weekly High 161.87
Previous Weekly Low 158.63
Previous Monthly High 161.78
Previous Monthly Low 153.17
Daily Fibonacci 38.2% 161.07
Daily Fibonacci 61.8% 161.26
Daily Pivot Point S1 160.74
Daily Pivot Point S2 160.34
Daily Pivot Point S3 159.92
Daily Pivot Point R1 161.55
Daily Pivot Point R2 161.97
Daily Pivot Point R3 162.37

More By This Author:

AUD/JPY Price Analysis: Loses Ground Below The Mid-97.00s Following BOJ's Ueda Comments
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Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...

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