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22 Jan 2015
EUR/JPY retakes 136 handle as ECB announces expanded asset purchase program
FXStreet (Mumbai) - The EUR/JPY pair recovered part of its losses to trade above 136.00 handle after the European Central Bank announced the expanded asset purchase program in line with the market expectation.
The pair now trades at 136.13 compared to 135.85 levels seen before the ECB press conference. The ECB announced an expanded asset purchase program, which shall include monthly purchases of public and private securities across Eurozone nations along with Asset backed securities and covered bond purchases. Moreover, the ECB would begin purchasing EUR 60 billion securities per month, starting from March till September 2016. Overall the 20% of the sovereign bind market risk will be held by the ECB, while 80% will be held by national central banks.
The program announced is largely in line with the market expectation. Thus, the EUR is recovering as the program was already priced-in by the markets.
EUR/JPY Technical Levels
The immediate resistance is seen at 136.42 (hourly 100-SMA), above which the pair could rise to 136.62 levels. Meanwhile, support is seen at 135.79 and 135.30 levels.
The pair now trades at 136.13 compared to 135.85 levels seen before the ECB press conference. The ECB announced an expanded asset purchase program, which shall include monthly purchases of public and private securities across Eurozone nations along with Asset backed securities and covered bond purchases. Moreover, the ECB would begin purchasing EUR 60 billion securities per month, starting from March till September 2016. Overall the 20% of the sovereign bind market risk will be held by the ECB, while 80% will be held by national central banks.
The program announced is largely in line with the market expectation. Thus, the EUR is recovering as the program was already priced-in by the markets.
EUR/JPY Technical Levels
The immediate resistance is seen at 136.42 (hourly 100-SMA), above which the pair could rise to 136.62 levels. Meanwhile, support is seen at 135.79 and 135.30 levels.