EUR/JPY slammed to over 2-month lows near 112.00 handle

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The EUR/JPY cross extended its sharp reversal from weekly high and dropped over 200-pips from session peak level of 114.39 touched during post-BOJ trading action.
Currently hovering around 112.20-30 band, the cross came under intense selling pressure primarily led by strong bid tone surrounding the Japanese Yen. On Wednesday, BOJ decided to keep its interest rates unchanged at -0.1% forcing investors to cover their bearish Yen bets as market seem convinced that the central bank's new policy framework, targeting to keep 10-year interest rates near zero, would have a material effect on the country currency.
Meanwhile, a range-bound price action around the EUR/USD pair has failed to contribute towards attracting any buying interest and the cross remains at the mercy of price action surrounding the Japanese Yen.
Next in focus would be the Fed monetary policy decision, which would provide fresh impetus for both the EUR/USD and the USD/JPY major and eventually drive the EUR/JPY cross.
Technical levels to watch
Immediate downside support is pegged at 112.00 handle below which the pair seems to immediately aim towards 111.37 (June 27 low) before heading towards 111.08 (July 11 low) and then to 110.86 (July 8 low). Upside resistance levels are now seen at 112.60, 113.00 (round figure mark), which if cleared might lift the pair towards 113.40 strong resistance area.
       Sell 67%
Buy 33%

100.0%67.0%06570758085909510000.10.20.30.40.50.60.70.80.910  


  Avg Sell Price 114.46
Avg Buy Price 115.83


Liquidity Distribution 109.06113.51117.0000.10.20.30.40.50.60.70.80.911.100.10.20.30.40.50.60.70.80.91109.06113.51117.00SellBuy  


Updated Sep 21, 13:39 GMT See Full Study