Eurjpy Trades High Ahead Of Boj Meeting

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Eurjpy Trades High Ahead Of Boj Meeting

EUR/JPY Trades Above 158 Ahead Of BoJ Meeting

The Bank of Japan's highly anticipated meeting is just around the corner, and it seems that EUR/JPY is clinging to its gains for now.

Today, the EUR/JPY managed to get close to 159 only to experience selling as the trades brace for the high volatility event. For now, EUR/JPY is exchanging hands at 158.26 with a focus on the upcoming BoJ's decision.

The fundamentals from the Eurozone show a decline in German inflation. This means the ECB can now afford to pause its rate hike campaign as it finally has proof of inflation cooling down. The change will be a fresh breather for the EU economies, which are already struggling from record interest rates.

However, the one bearish news for the single currency is Germany's Q3 GDP, which is still negative. But that's also good news, considering the GDP's rate of decline was not as much as the market was expecting it to be!

On the other side, we have the BoJ meeting that is overshadowing every other piece of news. The key focus is how the YCC policy will be shifted after the recent events. According to markets, the Yen will appreciate after the BoJ's meeting, which is the main reason why EUR/JPY is experiencing some selling.

If we turn our attention to the charts, the D1 timeframe of EUR/JPY shows that price action is still above the Ichimoku Cloud despite the recent sell-off. But if the EUR/JPY doesn't change direction, it will fall to 157.69, which is present inside the cloud.

Before that, the 158 level is also present, which is a major support for the EUR/JPY. After that, we have the 157.75, 150.50, and then the 150.00 round figure support.

On the daily chart, all the simple moving average lines are below the current price of EUR/JPY, which is a sign of bullish momentum. In the short term, the EUR/JPY's reaction to the 20 SMA and the 50 SMA will be interesting to watch as these levels will serve as dynamic support.

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