EUR/USD, EUR/JPY and USD/JPY rally as BoJ keeps interest rates unchanged
Outlook on EUR/USD, EUR/JPY and USD/JPY as BoJ sticks to its ultra-loose monetary policy and provides no guidance for 2024.
EUR/USD resumes ascent
EUR/USD's drop from last week’s $1.1009 high seems to have found support at Friday’s $1.0889 low with the cross resuming its ascent amid quiet trading as the festive season is getting closer.
The late August high at $1.0945 is back in sight, a rise above which would put the recent highs at $1.1009 to $1.1017 on the cards. Further up lurks the 10 August high at $1.1065.
Were Friday’s low at $1.0889 and the 14 November high at $1.0887 to give way, though, the 22 November low at $1.0852 could be reached instead.
EUR/JPY rallies as BoJ sticks to ultra-loose monetary policy
EUR/JPY’s saw a swift ascent as the Bank of Japan (BoJ) stuck to its ultra-loose monetary policy and provided no guidance on whether it may move away from it next year.
EUR/JPY shot back up to its 11 December high and late October low at ¥157.68 to ¥157.70. Were this resistance area to be exceeded, the 55-day simple moving average (SMA) at ¥159.43 could be reached.
Minor support sits at Thursday and Friday’s highs at ¥156.49 to ¥156.48.
USD/JPY surges higher from last week’s five-month low
USD/JPY rapidly regained lost ground from last week’s ¥140.95 five month low as the BoJ kept its short-term rates at -0.1%, and that of the 10-year government bond yields around 0%. The central bank also retained a loose upper band of 1.0% for its long-term government yield.
USD/JPY nears the late August and September lows at ¥144.45 to ¥144.54 which may short-term cap. If not, the November-to-December downtrend line at ¥145.66 could be reached.
Potential slips should find support around Monday’s high at ¥143.16.
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