EUR/JPY Price Analysis: Bulls keep the reins past 146.00 despite BOJ’s inaction

• EUR/JPY pares the biggest daily loss in five weeks, whipsaws after BOJ’s verdict.
• BOJ left benchmark rate, YCC policy unchanged while matching market forecasts.
• Sustained trading beyond 100-SMA, monthly support line keeps buyers hopeful.
• Weekly resistance line holds the key to fresh multi-month high.

EUR/JPY remains mildly bid above 146.00, despite the Bank of Japan (BOJ) induced volatility while bracing for the fifth consecutive weekly run-up during Friday.

The BOJ matched wide market forecasts by keeping its benchmark rate at -0.1% and the Yield Curve Control (YCC) practice to defending the 10-year Japanese Government Bond yields (JGBs) near 0.0%. It should, however, be noted that the Japanese central bank also cited expectations of economic recovery despite mentioning the broad fears, which could have challenged the EUR/JPY buyers.

Also read: BOJ Quarterly Outlook Report: Developments in FX rates, international commodity prices seen as risk to prices

Even so, the EUR/JPY prices remain well above the one-month-old support line and the 100-SMA support amid a recent recovery in the RSI (14) and the receding bearish bias of the MACD.

As a result, the pair buyers are all set to challenge the weekly resistance line, around 147.50, before aiming for the fresh high since December 2014, currently around 148.40. In doing so, the year 2014 peak near 149.80 and the 150.00 psychological magnet will be in focus.

Alternatively, the aforementioned support line and the 100-SMA, close to 145.00 and 144.80 in that order, will precede the early month’s peak around 144.10 and the 144.00 threshold to challenge the bears.

EUR/JPY: Four-hour chart

Trend: Further upside expected