EUR/JPY Tumbles Below 123.00 Level
The EUR/JPY
pair tumbled from early morning highs of 126.47 all the way to 122.54
and has failed to register any meaningful recovery even after such steep
fall.
The BoJ disappointed markets by holding its monetary
policy unchanged, squashing hopes of additional stimulus that would have
further assisted global risk-on rally. The pair is now within striking
distance of 122.53 level, its lowest daily closing since April 2013.
Technical levels to watch
An
extended selling pressure below 122.50 support is likely to eye April
month lows support near 121.70 area. Failure to bounce-off these
immediate support levels now seems to open room for continuation of the
pair's downward trajectory all the way to 120.00 psychological mark
support.
Meanwhile on the upside, 123.00-123.15 zone seems to
invited fresh offer, which if absorbed could lift the pair back above
124.00 handle towards 124.50 strong horizontal resistance area.
