EUR/JPY fast approaching one-month low

EUR/JPY is fast approaching lowest level since July 11 on the back of broad based gains in the Japanese Yen.

Has BOJ accepted defeat?

Bank of Japan (BOJ) officials are surprisingly silent today despite the sharp gains in the Japanese yen. This contradicts the usual jawboning seen immediately after the spike in Yen. Hence, we are forced to think that BOJ may have accepted defeat.

Ahead in the day, the focus is likely to be on the US data sets – CPI, Housing data, Industrial production. BOJ commentary on Yen could hit the wires, although markets may not pay much attention to the same.

EUR/JPY Technical Levels

The cross was last seen trading around 112.45 levels. A break below 112.31 (Aug 5 low) would mark the lowest since July 11 low. A break below 112.22 (23.6% of 122-109.205) would expose 110.865 (July 8 low). On the higher side, resistance is seen at 113.28 (daily high), above which the cross could target 114.09 (38.2% of 122-109.205).