The EUR/JPY is displaying back-and-forth moves around 143.00 in the Asian session. The Japanese Yen bulls are attempting for the third time to push the cross below the immediate support of 143.00 as investors are expecting some discussions related to an exit from the decade-long ultra-loose monetary policy managed by the Bank of Japan (BoJ) in the speech from BoJ Governor nominee Kazuo Ueda.

Japan’s government has been reiterating that the administration will look for a transitioning process in the monetary policy with novel BoJ leadership to major the Japanese Yen more competitive against other FX currencies. Therefore, some further yield-widening discussions are expected from BoJ Ueda’s speech, scheduled for Friday.

Meanwhile, the Euro is struggling to settle its feet despite hawkish commentary from European Central Bank (ECB) President Christine Lagarde. ECB Lagarde states, “Headline inflation has begun to slow down but reiterated that they intend to raise the key rates by 50 basis points (bps) at the upcoming policy meeting. She also cited that the central bank is not seeing a wage-price spiral in the Eurozone.

EUR/JPY alternates gains with losses in the 143.00 region on Thursday, an area coincident with the temporary 100-day SMA.

While the cross looks somewhat side-lined for the time being, a convincing breakout of the 2023 high at 144.16 (February 21) could spark extra strength to, initially, the December 2022 peak at 146.72 (December 15).

In the meantime, while above the 200-day SMA, today at 141.37, the outlook for the cross is expected to remain positive.

Fundamentals from ECB and BOJ has brought volatility to EUJPY

Feb 23 2023

Stop Loss -1.44%

Holding time 2d0hr

141.574

Entry price

139.535

Stop loss price