EUR/JPY rises to 10-DMA after BOJ rate decision

Offered tone around JPY gathered pace, pushing EUR/JPY to 10-DMA level of 122.33 after Bank of Japan kept rates unchanged and raised economic assessment.

Supported by 23.6% Fib

The cross found takers around 121.65 (23.6% of Nov 9 low - Dec 15 high) on Monday, although the subsequent recovery failed around 10-DMA level post-BOJ in the Asian session.

The central bank sounded upbeat on export growth, which is not surprising, given the sharp fall in the Japanese Yen.

EUR/JPY Technical Levels

The cross was last seen trading around 122.20. a break above 122.33 (10-DMA) would expose 5-DMA at 122.70, above which the psychological level of 123.00 stands exposed. On the lower side, a breach of 122.00 would shift risk in favour of a drop to 121.64 (23.6% Fib) and then to 121.00 (psychological level).