EUR/JPY in 2-day lows near 136.50

• The cross is sharply lower around 136.50.
• EUR-selling behind the move.
• BoJ reasserted the ultra-easing policy.

The softer tone around the European currency is motivating EUR/JPY to drop to the area of daily lows in the mid-136.00s.

EUR/JPY gains capped near 137.50

The cross is correcting lower after three consecutive sessions with gains, including Friday’s peak around 137.50, levels last traded in late August 2015.

The shared currency is extending its selling bias following Friday’s drop post-payrolls, helped by some uncertainty around the German government and lower-than-expected Sentix index for the month of February.

On the Japanese side, Governor H.Kuroda once again defended the ultra-easing stance from the Bank of Japan earlier in the Asian session. However, the Japanese safe haven currency failed to depreciate further after testing fresh lows vs. the US Dollar on Friday, regaining some buying interest afterwards vs. its main rivals.

EUR/JPY relevant levels

At the moment the cross is losing 0.47% at 136.57 facing the next support at 136.46 (low Feb.5) seconded by 135.80 (10-day sma) and then 135.43 (21-day sma). On the other hand, a break above 137.53 (2018 high Feb.2) would open the door to 137.63 (high Sep.17 2015) and finally 139.08 (low Aug.21 2015).