Investing.com - The euro soared against the yen on Thursday
after the Bank of Japan announced it would double the size of its
asset purchasing program in two years.
In U.S. trading on Thursday, EUR/JPY was up 3.62% at 123.85, up
from a low of 119.16 and off a high of 123.94.
The pair sought to test support at 119.12, Wednesday's low, and
resistance at 124.50, the high from March 20.
The Bank of Japan earlier said it will double its asset-purchasing
program over the next two years and extend the maturities of the
bonds it purchases.
The news caught many investors off guard and sent the yen plunging
as the Tokyo steps up its efforts to steer the world's
third-largest economy away from deflationary decline.
The euro, meanwhile, shot up off earlier losses after the European
Central Bank left rates unchanged at 0.75%.
The euro plunged earlier after ECB President Mario Draghi said
monetary authorities were "ready to act" and trim benchmark
interest rates if needed, adding that monetary policy will remain
accommodative for as long as is needed.
The single currency, however, snapped back up after Draghi said
markets have underestimated the bank's commitment to the single
The euro, meanwhile, was down against the pound and up against the
U.S. dollar, with EUR/GBP trading down 0.15% at 0.8477 and EUR/USD
trading up 0.28% at 1.2885.
The eurozone on Friday will release official data on retail sales
and revised data on fourth-quarter economic growth figures. Germany
is to publish official data on factory orders.
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