EUR/JPY:- All Eyes On Bank Of Japan Monetary Policy Statement
EUR/JPY:- We have seen the pair retrace from the highs of 132.000 having previously acted as a strong support and resistance barrier in the past, it's no surprise price struggled to break through this level. With BOJ on the horizon, in the early hours of Tuesday morning, we could expect the pair to see a further decline after 2 solid weeks of bearish price action. The higher timeframe has formed a huge reversal shooting star as a warning signal that we may be in for a new leg the downside.
The immediate market condition looks to be supported by the daily zone of 129.355. This area previously caused strong reactions and has failed to break as price looks to rally from the lows and retest the current supply region of 130.200. The moving averages are also guiding us with a bearish bias suggesting that momentum has now be shifted to the downside as the crossover remains imminent.
A break of the daily support zone would most certainly see the price fall back to 127.000, and, potentially further as the sentiment remains that a tightening of Monetary Policy and an end to Quantitative Easing, could force a strong reaction in favour of the Japenese Yen.