EUR/JPY leans to the downside as BOJ decision looms large

FXStreet (Moscow) - EUR/JPY dropped to 141.26 after opening at 141.63 as the market players await BOJ monetary policy decision

Another disappointment in store?

EUR/JPY bulls were full of optimism and pushed the cross to the intraday highs at 142.45 (not seen since the beginning of April) early on Tuesday, but German inflation data brought them down to earth. The preliminary April CPI came out lower than expected and triggered new round of speculations about possible ECB easing. Geopolitical events took another negative turn as Russia back-answered to new Western sanctions. Naturally, risk sentiments turned sour and JPY began to gain ground across the board. EUR/JPY finished Tuesday in mid-141.00 and has a good chance to continue the downside if EZ CPI follows the suit of German data and come out lower than expected. In this case EUR/JPY might drop to the pivotal support zone of 141.00, while better or in line with expectations numbers will trigger the relief EUR rally that may push the cross to at least 142.00. Also keep an eye on geopolitical situation as new wave of anti-risk sentiments will keep JPY in demand

What are today’s key EUR/JPY levels?

Today's central pivot point can be found at 141.95, with support below at 141.40, 141.04 and 140.48, with resistance above at 142.32, 142.87, and 143.23. Hourly Moving Averages are mostly bearish with the 200SMA at 141.61 and the daily 20EMA at 141.49. Hourly RSI is bearish at 39.