CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
✖

EURJPY Nonplussed by BOJ On the Verge of a Big Break Above 13200 Resistance

Article By: ,  Head of Market Research
September 19, 2018 2:23 PM

There was a central bank meeting today, but you’d be excused for not noticing.

Overnight, the Bank of Japan made no changes to monetary policy and reiterated its vow to keep interest rates extremely low “for an extended period,” as widely expected. Recall that the BOJ made a number of tweaks to monetary policy in its July meeting, essentially preparing the central bank for an extended fight to raise inflation.

Last week, Japanese PM Shinzo Abe stated that the BOJ’s large-scale easing couldn’t continue indefinitely and that he wanted to see a concrete plan for normalizing monetary policy over the next three years (assuming he wins re-election tomorrow). When he was asked about Abe’s comments, BOJ Governor Kuroda gave the political answer: “Any central bank would want to achieve its goal as soon as possible and enter the process of normalization.” In other words, it’s steady as she goes at the BOJ.

From a technical perspective, EUR/JPY has rallied into an interesting crossroads. As the chart below shows, the pair is testing its highest level since early May in the mid-131.00s. A confirmed breakout of that level would leave little in the way of significant resistance until the upper-1.3300s, which marks both a previous resistance level and the completion of a Bearish Butterfly pattern.

For the uninitiated, a Bearish Butterfly pattern marks the confluence of three major resistance levels (the 127.2% Fibonacci extension of XA, the 200% extension of BC, and ABCD pattern completion). The tight convergence of three separate resistance levels suggests that rates are more likely to form a near-term top if they reach that level, so it will be a critical area to watch if EUR/JPY rallies further, perhaps on Friday’s flash PMI readings from the Eurozone.

Source: TradingView, FOREX.com


StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.


This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.

FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.

© FOREX.COM 2025