EUR/JPY Struggles in a Tight Range – Can ECB Trigger a Breakout?
Fellas, the Japanese Yen is going nowhere against the Euro and continues to trade in a tight trading range of 125 – 123.250 for the last three weeks. Earlier today during the Asian session, the Bank of Japan released the interest rate decision and, as widely expected, BOJ kept its short-term interest rate target at -0.1%.
The market was expecting some movement over the release but the pair remained steady with no significant change. Now all attention is shifting to ECB’s monetary policy decision tomorrow.
The ECB policy decision is due tomorrow and it may be best perceived as a transition meeting. Draghi is expected to lay the groundwork on a new round of long-term loans (targeted long-term refinance operations).
On the technical side, the EUR/JPY is steady in a tight trading range of 125-123.80. On the daily timeframe, the 50-periods EMA is giving a hard time to the EUR/JPY , as it’s pushing the pair lower below 125.
Support Resistance
124.46 125
124.17 125.26
123.63 125.81
Key Trading Level: 124.72
EUR/JPY – Trading Plan
I’m sticking with the same plan to go long on EUR/JPY above 124.500 with a stop below 124.250 and take profit of 124.850. On the flip side, selling is preferred below 124. 450.
Good luck!
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