EUR/JPY extends rally above 167.50 following BoJ rate decision

FXStreet
Updated Apr 26, 2024 05:49
Mitrade

■  EUR/JPY gains ground near 167.20 amid the weaker JPY on Friday. 

■  The BoJ kept interest rates steady around zero on Friday. 

■  ECB’s Nagel said he would be in favor of a rate cut in June. 


The EUR/JPY cross drifts higher to 167.20, its highest level since 2008, during the Asian trading hours on Friday. The uptick of the cross is supported by the weaker Japanese Yen (JPY) after the Bank of Japan (BoJ) announced its policy decision. 

The Bank of Japan (BoJ) board members decided to leave the key interest rate unchanged at 0% at its April policy meeting on Friday, as widely expected. The Japanese central bank hiked rates for the first time since 2007 in its March meeting, ending Japan’s negative interest rate era that began in 2016. 


Furthermore, the BoJ provided new forecasts predicting that inflation would remain close to its 2% target over the next three years, indicating that it is prepared to raise borrowing rates later this year. The central bank added it would continue to purchase government bonds in accordance with guidance decided in March to acquire around 6 trillion yen ($38.45 billion) per month. Following the meeting, the Japanese Yen (JPY) attracts some sellers against the Euro (EUR). 

The recent consumer inflation in Tokyo declined sharply in April. The Statistics Bureau of Japan reported on Friday that the headline Tokyo Consumer Price Index (CPI) for April rose 1.8% YoY, compared to the previous reading of a 2.6% rise. Meanwhile, the Tokyo CPI ex Fresh Food, Energy increased 1.8% YoY versus 2.7% expected and the previous reading of 2.9% rise. The softer inflation in Tokyo also weighs on the safe-haven JPY. 

On the Euro front, European Central Bank (ECB) policymaker Joachim Nagel said on Wednesday that he would be in favor of a rate cut in June, adding that such a step would not necessarily be followed by a series of rate cuts. The ECB’s Fabio Panetta said small interest rate cuts will stem the risk of prolonged economic stagnation in the euro area.


EUR/JPY


Overview
Today last price 167.21
Today Daily Change 0.19
Today Daily Change % 0.11
Today daily open 167.02
 
Trends
Daily SMA20 164.5
Daily SMA50 163.46
Daily SMA100 161.07
Daily SMA200 159.9
 
Levels
Previous Daily High 167.09
Previous Daily Low 165.93
Previous Weekly High 165.03
Previous Weekly Low 162.67
Previous Monthly High 165.36
Previous Monthly Low 160.22
Daily Fibonacci 38.2% 166.65
Daily Fibonacci 61.8% 166.37
Daily Pivot Point S1 166.27
Daily Pivot Point S2 165.52
Daily Pivot Point S3 165.11
Daily Pivot Point R1 167.43
Daily Pivot Point R2 167.84
Daily Pivot Point R3 168.59

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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