EURJPY Poised to test the top after the BOJ Rate DecisionEURJPY Poised to test the top after the BOJ Rate Decision
EURJPY broke out of a descending type of channel pattern or something similar.
The last two candles confirmed the bullish movement in a clear way and the odds are that EURJPY may rise further during the coming hours.
However this movement is also supported by BOJ Interst Rate decision.
BOJ kept rates unchanged at 0.5% as expected and they didn't change anything at all in their comments.
News - reported by forexlive
The Japanese Yen weakened across the board throughout BoJ Governor Ueda press conference. He sounded like someone who's not in a rush to hike rates at all. The two key lines were "monetary tightening effectively works on demand-driven inflation, but current inflation is largely supply-driven" and "current FX rate not diverging far from our assumptions".
He's basically saying that the current inflation is likely to be a one-off event and we all know how much weight they place on sustained inflation to durably hit their 2% target. And the comment about FX suggests that the depreciation in the JPY does not concern them at all, which gives the market the green light for further depreciation (all else being equal).
You may find more details in the chart!
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