EUR/JPY clocks two-week low after BOJ disappointment

EUR/JPY fell to 113.91; lowest since July 12; as Bank of Japan’s (BOJ) decision to expand ETF purchases failed to impress markets.  

Recovers to 114.70

The cross has managed to back from the daily lows, although remains well below today’s opening rate of 116.58 levels. JPY was on the back foot heading into the BOJ event as markets expected the central bank to announce rate cut and an expansion of monetary base.

However, bank kept all key tools unchanged which disappointed markets and led to a knee jerk drop in Yen pairs. The pair was last seen trading around 114.70 levels.

EUR/JPY Technical Levels

A break below immediate support at 113.91 (daily low) would open doors for a drop to 112.22 (23.6% of Brexit day drop). On the other hand, a break above 115.60 (50% of Brexit day drop) would expose 117.11 (61.8% of Brexit day drop).