Forex - EUR/JPY soars as BoJ doubles size of easing program


Shutterstock photo - 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 currency.

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. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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This article appears in: Investing , Forex and Currencies

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