- EUR/JPY is trading above the 50-day MA for the first time since mid-December.
- The pair is reporting gains for the third straight day on JPY selling ahead of Kuroda’s speech. The yen will likely reverse losses if Kuroda sounds less dovish than expected.
EUR/JPY has crossed a key moving average (MA) hurdle for the first time in over two months.
As of writing, the cross is trading at 125.82 – above the 50-day MA, currently at 125.75. That widely followed MA had last come into play on Dec. 13. Back then, the pair was trading around 129.00.
Focus on Kuroda
Bank of Japan (BOJ) governor Kuroda is scheduled to speak at 05:30 GMT.
On Tuesday, the central bank head expressed willingness to do more (easing) if JPY strength leads to disinflation and economic slowdown.
Looking at the broad-based JPY weakness at press time, it appears as though markets are expecting Kuroda to reiterate dovish comments made yesterday.
The anti-risk JPY, therefore, could pick up a strong bid, if Kuroda disappoints expectations. In that case, a convincing break above the 50-day MA in EUR/JPY will likely remain elusive.
Technical Levels
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