EUR/JPY revisits 200-day MA hurdle on Yen selling

• Yen drops as North Korea risks fade.
• EUR/JPY rises to 200-day MA.
• Eyes BOJ rate decision.

The Japanese Yen fell in Asia on fading North Korea risks, pushing the EUR/JPY higher to 200-day moving average of 131.45.

The Japanese Yen looked overbought after the recent rally and the increased prospects denuclearization of North Korea seems to have set the tone for a correction in the currency.

Currently, the EUR/JPY cross is trading at 131.35, having printed at high of 131.59 earlier today. The pair created a bearish outside day candle yesterday after ECB's Draghi played down the removal of the easing bias.

Focus on BOJ

The Bank of Japan (BOJ) is likely to keep rates unchanged, while Governor Kuroda may stress the need to keep policy accommodative. The EUR/JPY may feel revisit a session low of 130.67 if Kuroda talks QQE taper.

EUR/JPY Technical Levels

A close above 131.98 would revive the corrective rally from the March 5 low of 129.35 and could yield 133.06 (Feb. 21 high) and 133.41 (100-day MA).

On the other hand, a daily close below 130.52 (previous day's low) would mean the corrective rally from the March. 5 low of 129.35 has made a temporary top at 132.02 (March 6 low) and would open doors for 129.35 and 129.00 (psychological level).