It remained in line with normal expectations for the results of Japan's central bank policy meeting which saw it continue to maintain loose monetary policy as other global central banks continued to tighten policy.
The Bank of Japan (BOJ) kept interest rates at -0.10% with a 10-year bond yield target of around 0%, in addition to announcing its readiness to increase stimulus if needed.
The Yen currency showed no significant reaction after the meeting while analysts expect the Yen to continue to move weakly based on central bank fundamentals.
Before the BOJ, the European central bank (ECB) meeting first focused on the New York session which surprisingly saw the Euro depreciate after a rate hike by the ECB.
However, the Euro traded slightly higher against the Yen at the early opening of the Asian session this morning ahead of a flat price move after the BOJ meeting.
It can be seen that the price movement on the EUR/JPY chart which was flat throughout last Wednesday around the 147,600 zone began to show a decrease on Thursday yesterday following the reaction to the ECB meeting.
The price has plunged to around 145,600 before a flat price movement around that at the end of the New York session.
Before the price plunge, the bounce tested the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/JPY chart but failed to break through it, signaling a bearish trend change for the price.
There was an increase in the price at the beginning of the Asian session this morning, but the price still remained hovering below the MA50 barrier with the expectation that the downward trend would continue.
For the expectation of further decline, if the price crosses the level of 145.00 then it is seen that it will once again test the support zone at 144.00 which was the focus when the reaction attracted the price in that area during the intervention of Japan at the end of last week.
A clear signal for a bearish movement will push the price to reach around the 141.00 zone.
However, if the price bounces back at the close of trading this week, a break above the MA50 barrier will see the price once again test the 147.600 zone which has been a resistance this week.
Next, the height at 148.300 which was reached last week and is the highest price record in 8 years will be the next target to challenge the price.
