Eurjpy Struggles Near Resistance

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Eurjpy Struggles Near Resistance

Eur/Jpy Struggles Near 160.00 On Improved Sentiment

EUR/JPY has managed to turn higher on Thursday, a sign that EUR has the upper hand against the JPY. For the rest of the day, the economic docket is mostly empty, which means it will all depend on technicals and the current fundamental situation.

The FOMC is finally over, and the outcome was a 0.50% rate cut, similar to the forecasts made by the economists. As of now, EUR/JPY is seen near 159.54, with 160.00 acting as support. Overall, EUR/JPY is up by 0.80% for the day, which is pretty good in the FX market.

Eur/Jpy Finds Support Near 159.51

The sentiment has improved, which has also lifted the EUR/JPY higher. Meanwhile, the members of the ECB remain divided on the matter of the rate cuts. On the other hand, the Bank of Japan will also not raise the rates at this time & will wait for more data.

However, the BoJ is expected to make changes to its quantitative easing policy. If we look back, the last meeting of the BoJ led to higher volatility and even attracted the attention of the Japanese parliament.

At that time, the BoJ governor defended the decision to hike the rates and even hinted at future rate hikes, given the economy remains on track. The rest of the BoJ officials also share the same views which means the BoJ will remain on a hawkish path.

While the EUR/JPY is bullish for now, the long-term trend is still bearish as the price is still below the Ichimoku Cloud. Also, the EUR/JPY is developing below the 200 SMA, which is also a bearish sign.

However, a break of 160.00 will be a sign of a bullish comeback and will allow the cross to move toward 162.00. On the way lower, the first support is at 159.51. Failure at this level will send the EUR/JPY lower towards 158.00 and then 157.55.

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