Chart - Courtesy Trading View
EUR/JPY pair plunged to 3-week low at 139.54 on reports that Japanese government is likely to appoint Kazuo Ueda as the next Bank of Japan (BoJ) governor.
The yen gained across the board, as analysts expect the new governor could bring an end to the BOJ's ultra-easy monetary policy sooner than previously thought.
Reports also said that government will also nominate Ryozo Himino, former head of Japan's banking watchdog, and BOJ executive Shinichi Uchida as deputy governors.
Markets had been expecting Amamiya to come in and pick-up where Kuroda left off. But Yen surges as Kazuo Ueda set to be nominated BOJ governor.
The pair quickly reversed losses and edged higher to trade at 140.30 on dovish remarks by the possible BoJ governor candidate.
Ueda said that the current policy is appropriate and added they need to continue the easy policy.
EUR/JPY has retraced below 200-DMA. The pair finds stiff resistance at daily cloud. Technical indicators are also biased lower.
Scope for test of major trendline support at 138.55. Upside only on break above daily cloud and 200-DMA.
