EUR/JPY fades spike to 114.00 handle

EUR/JPY witnessed a spike to 114.14 before deflating to 113.780 levels, thus forcing us to consider the possibility of BOJ intervention.

Rejected near previous day’s high

The turn lower from the high of 114.14 marks failure near the previous session’s high of 114.19 levels. Yen’s sudden drop goes unexplained although speculation is on the rise about the possible central bank intervention.

However, skepticism about central bank intervention prevails as well given the USD/JPY pair was trading well above the critical level of 100.00.

EUR/JPY Technical Levels

Immediate hurdle is seen at 114.19 (previous day’s high), above which the cross could target 115.43 (Sep 15 high). A violation there could yield 116.08 (Sep 14 high). On the other hand, breakdown of support at 113.62 (Sep 23 high) would expose 113.11 (5-DMA + 10-DMA), under which 112.25 (Sep 27 low) stands exposed.