EUR/JPY Price Analysis: Soars to near 141.00 on unchanged BoJ policy

• EUR/JPY has delivered a perpendicular north-side move on the unchanged BoJ policy.
• BoJ Kuroda has kept the interest rate unchanged at -0.1% and the 10-year JGBs target at around 0%.
• The cross has surpassed the 200-period EMA at 140.00 in one go and is expected to extend gains further.

The EUR/JPY pair has displayed a juggernaut run as the Bank of Japan (BOJ) has kept the monetary policy unchanged. BoJ Governor Haruhiko Kuroda has kept the interest rate unchanged at -0.1% and the 10-year Japan Government bonds (JGBs) target at around 0%.

Investors are expecting cues about an exit from the decade-long ultra-easy monetary policy, however, an unchanged policy stance has weakened the Japanese Yen.

On an hourly scale, EUR/JPUY has recovered dramatically after forming a Triple Bottom chart pattern. The formation of the aforementioned chart pattern around 138.00 is demonstrating a sheer bullish reversal. The cross has surpassed the 200-period Exponential Moving Average (EMA) at 140.00 in one go and is expected to extend gains further, considering the momentum in the north-side move.

The Relative Strength Index (RSI) (14) has aggressively entered into the bullish range of 60.00-80.00, which indicates more upside ahead.

After a run-up, a minor corrective move to near January 5 low at 139.97 will be a decent opportunity of bargain buy for the market participants, which will drive the asset towards January 6 high at 141.45 followed by December 28 high around 143.00.

On the flip side, a downside move below the previous week’s low at 138.00 will drag the cross towards January 3 low at 137.39. A slippage below the latter will expose the asset for more downside towards April 14 low at 135.51.

EUR/JPY hourly chart