EURJPY is one of the pairs that has seen some wild moves today and is expected to remain volatile, at least during the European morning session.
Pair spiked following the Bank of Japan monetary policy decision. BoJ decided to keep rates as well as yield curve control (YCC) mechanism unchanged during the first meeting under new governor Ueda. A line promising rates to be kept at current or lower levels was removed from the statement. While this could be seen as a somewhat hawkish move, the Bank of Japan also said that it will conduct a review of its monetary policy and that it will last 1-1.5 years. JPY slumped as investors took it as a suggestion that any shift in BoJ policy will not come until review is completed. Even assurances from Ueda at post-meeting conference that conducting review does not mean that policy will stay unchanged for those 1-1.5 years failed to change investors sentiment towards JPY. Speaking on YCC, Ueda said that it will remain in place until achieving the price target is in sight.
When it comes to EUR, a number of CPI and GDP reports from the Old Continent will be released today. French GDP data came in-line with expectations while French CPI unexpectedly accelerated. Spanish data showed better-than-expected Q1 GDP growth but also a larger-than-expected acceleration in CPI. German GDP data at 9:00 am BST and CPI data at 1:00 pm BST will also be on watch.
Taking a look at EURJPY at D1 interval, we can see that the pair has climbed above October 2022 high in the 148.40 area and is trading at the highest level since 2014. Moreover, 2014 highs are just a touch away at 149.70 and a break above would push the pair to levels not seen in 15 years!
EURJPY at D1 interval. Source: xStation5
EURJPY is slowly but steadily approaching 2014 highs in the 149.70 area. Source: xStation5
