EUR/JPY trims gains after Japan denied 50-year bond issue

Yen selling stalled after Japan MOF denied plans to issue 50-yr bonds, thus pushing EUR/JPY lower from the session high of 117.15 to around 116.50 levels.

Trades below hourly 200-MA, Eyes Abe speech

The cross was last seen trading below hourly 200-MA level of 116.74 levels. PM Abe is due to speak in a few minutes. Markets expect Abe to disclose the details of the stimulus package. If reports are to be believed, the stimulus size is likely to be JPY 27 trillion.

EUR/JPY Technical Levels

A break above hourly 200-MA level of 116.74 would expose daily high of 117.15, above which prices could target 118.03 (50-DMA). On the other hand, a break below 116.00 would open doors for a slide to 114.91 (daily low). A violation there could yield 113.68 (July 1 low).