- EUR/JPY has bounced off 50-DMA support at 121.63 on Thursday's trade.
- Below 50-DMA, the pair finds next strong support by daily cloud at 121.49, weakness only on break below.
- The pair is extending gains on the day, has broken above 5-DMA on yen weakness.
- Yen slumped across the board after the Bank Of Japan squashed tapering hopes.
- The BoJ announced JGB-buying plans and increased bond purchases in the 5-10 year maturity range.
- Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-holds-cloud-support-weakness-only-on-break-below-507599) is progressing well.
- Support levels - 122.02 (5-DMA), 121.74 (50-DMA), 121.49 (cloud top), 120.54 (Jan 17 low)
- Resistance levels - 122.95 (Jan 20 high), 123.80 (trendline), 124
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -42.4271(Neutral), while Hourly JPY Spot Index was at -55.9374 (Bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
