This morning's Asian session saw an attractive price movement exhibited by the Yen currency which reacted to the results of the meeting of the central bank of Japan (BOJ).
Since yesterday, the Yen has started to strengthen following expectations of a change in yield curve control (YCC) by the central bank.
The meeting just now saw the interest rate decision maintained and the loose monetary policy also maintained. The yen weakened as soon as the decision was announced.
However, the market soon returned to witness a re-strengthening of the Yen after the BOJ expressed flexibility on the JGB bond target and also larger purchases.
Observe the price movement on the chart of the EUR/JPY currency pair with a drastic price movement that has started since yesterday.
The price movement pattern has started to show signs of a change in trend after last week the price managed to record the highest level reached since 2008.
The price showed a dive up to the level of 152,200 at the end of the New York session before the price movement was temporarily flat pending the outcome of the BOJ meeting.
As soon as the results of the meeting were announced, the price soared up to reach the level of 154,900.
The rise did not cross the Moving Average 50 (MA50) support level on the timeframe on the EUR/JPY chart before falling again, indicating the price movement remains bearish.
Prices plunged back to the latest lows hit around 151,400 before rebounding slightly as trade moved into the opening of the European session.
With the Euro losing momentum following uncertain expectations of further monetary policy could prompt further declines if the Yen manages to maintain its strength.
The price could fall to around 150.00 which was an important focus level in the previous trade.
However, in the event of a price surge again, the 154.00 zone is seen to be the nearest resistance to be tested or the price will go back to the level reached during the surge in the Asian session this morning.
A move higher to break through the MA50 barrier indicates a trend change and could push the price back towards around 157.00.
