EUR/JPY and USD/JPY volatile after BoJ rate hike to 2008 levels, while AUD/USD rallies
EUR/JPY and USD/JPY show volatility after the expected Bank of Japan 25 basis point rate hike to 0.5%, a level not seen since 2008. Meanwhile, AUD/USD rallies and breaks through its downtrend line.
EUR/JPY sees increased volatility
EUR/JPY continues to flirt with last week's high of ¥162.89 following the expected Bank of Japan (BoJ) 25 basis point (bp) interest rate hike to 0.5%. A daily chart close above this level would target the 200-day simple moving average (SMA) at ¥164.48.
Minor support is found along the 55-day SMA at ¥161.76.
EUR/JPY daily chart
USD/JPY under pressure
USD/JPY revisited its 55-day SMA and Tuesday's low at ¥154.91 - ¥154.78 as the BoJ raised its rates to the highest level since 2008. This support area continues to underpin the price. Provided it holds, the November peak at ¥156.74 and the ¥158 region may be revisited.
Below ¥154.78 lies the mid-December high at ¥154.48.
USD/JPY daily chart
AUD/USD breaks through resistance
AUD/USD's rise above the $0.6302 early January high is potentially bullish. A rise above the 55-day SMA at $0.6338 may mean the end of the medium-term downtrend.
A fall through the current January low of $0.6132 would target the October 2008 low at $0.6009.
AUD/USD daily chart
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