EUR/JPY slumps to 115.65 on BOJ’s Kuroda

Despite strongly dovish comments delivered BOJ Governor Kuroda crossing the wires, the yen regains bids and extends to daily highs, leading to a sharp decline in the EUR/JPY cross.

EUR/JPY breaches 5-DMA support at 115.77

The EUR/JPY pair now drops -0.32% and hovers daily lows reached at 115.65, having failed to hold above 116 handle. The EUR/JPY cross faced strong offers above 116 barrier and eroded nearly 40-pips in reaction to BOJ Governor’s outrightly dovish speech, which markets are seen shrugging-off, as the yen is seen rallying across the board.

While on the EUR-side of the story, mild gains seen in the EUR/USD pair appears to have cushioned the downside in the cross, with the bulls consolidating the NFP aftermath.

Markets continue to absorb Kuroda’s comments, while awaiting fresh incentives from the European session ahead, while trading is expected to remain light and both the North American nations are on a holiday.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 116 (round figure) and from there to 116.75 (Jul 29 high). On the flip side, support is seen at 114.92 (10-DMA) below which it could extend losses to towards 114.58 (50-DMA).