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FxWirePro: EUR/JPY erases early gains, poised to extend downside below 200-DMA

Chart - Courtesy Trading View 

EUR/JPY was trading 0.08% lower on the day at 139.78 at around 09:40 GMT.

The pair has erased early gains and has slipped lower from session highs at 140.50.

On Wednesday, the Bank of Japan (BoJ) announced an unscheduled bond-buying operation.

The Japanese central bank offered to buy JPY200 billion worth of Japanese Government Bonds (JGBs), including JPY100 billion 3-5 Year and JPY100 billion 5-10 Year.

The Bank of Japan triggered sell-off saw EUR/JPY close 3.67% lower in the previous session, biggest single-day loss in over 6 years.

Technical bias for the pair has turned bearish. Price action has slipped below 200-DMA, scope for further downside. 

Immediate support lies at 38.2% Fib at 139.23. Break below will see dip till 50% Fib at 136.39. 
 

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