FxWirePro: EUR/JPY eases gains, dovish Kuroda’s dovish remarks keep downside cushioned

Chart - Courtesy Trading View 

EUR/JPY was trading largely unchanged at 138.47 at around 10:15 GMT.

The pair has erased early gains and slipped lower from session highs at 139.16.

Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was closely watching the impact of currency moves on the economy.

He warned of 'very high uncertainty' on the outlook due to rising commodity prices and added that the central bank won't hesitate to take additional monetary easing steps as necessary.

Kuroda also repeated the BOJ's policy guidance that the bank expects short- and long-term interest rate targets to "move at current or lower levels."

EUR/JPY edged higher after Kuroda's comments, but quickly erased gains. The pair finds stiff resistance at 55-EMA.

Price action remains capped below 200H MA, decisive break above required for upside continuation.

Hammer formation on the previous session's candle keeps scope for some gains. Decisive break above 55-EMA to see further gains.