EUR/JPY: better bid on expected easing from BoJ

EUR/JPY has eased back from the highs of just over the 118.00 mark and is consolidating towards the US close today.

EUR/JPY extended yesterdays bid from the mid point of the 115 handle with a pop highr in USD/JPY and also the Yen losing further ground on expectations the market anticipating further easing from the BoJ. The cross remains in bullish territory with a bias to the upside still with 119.50 the next key target due to Japanese authorities continuing to jawbone the yen lower with clear indications that growth and inflation in Japan are a concern that they want to address.

EUR/JPY levels

 Valeria Bednarik, chief analyst at FXStreet explained that the 1 hour chart presents a bullish bias, as indicators have resumed their advances within positive territory after correcting overbought readings, whilst the price remains well above its 100 SMA, with the 100 SMA extending further above the 200 SMA. "In the 4 hours chart,  the price is holding a handful of pips above its 200 SMA having been below it since late May, another indication that bulls are getting the grip. In the same chart, the Momentum indicator has turned modestly lower above its mid-line, but the RSI indicator heads north around 72, also supporting an upward continuation, particularly on a break above the 118.00 figure."