EUR/JPY: 110.88/84 recent lows on the cards?

EUR/JPY has been consolidating the the downside from the 116.40 sell-off, falling along with USD/JPY to 114.45 with a recovery high of 115.37. The dollar dropped to JPY104 in late-Asia before stabilizing.

EUR/JPY also fell with the market that seems less sure of what the BOJ will do at the end of this week.  "And even if one knew what the BOJ was going to do, there is not much confidence in anticipating the yen's direction.  We had thought there was room for disappointment with the BOJ, explained analysts at BBH. " Of the three dimensions of its current policy, the quantity of assets being purchases, the quality of those assets, and interest rates, we had thought that increasing ETF purchases and perhaps some other risk assets might be the likely course."

EUR/JPY levels

Analysts at Commerzbank noted that EUR/JPY failed to overcome the 118.37 July 15th high last week. "There is scope for the 112.59 short term uptrend. Beyond this dip focus should shift to the 55 day ma. Key resistance remains the 2014-2016 downtrend at 124.62. A close above here is needed to confirm longer term reversal. Below 112.43 will retarget the 110.88/84 recent lows."