On the day the ECB announced that it had left its policy rate unchanged, EUR/JPY traded in the low ¥176 range as the yen weakened. OANDA Lab is again explaining order book movements and correlation analysis today.
Yesterday, 29 October, the European Central Bank announced that it had left its policy rate unchanged, in line with market expectations, while also expressing concern about rising energy prices. The yen strengthened briefly after the announcement, but quickly reversed, breaking above the level before the policy announcement, and EUR/JPY ended the day weaker for the yen.
The chart analysis released today showed heavy buy orders in the mid-¥175 range and the mid-¥176 range on the order book, which are being treated as support and points to watch. Heavy sell orders were also seen in the low-¥175 range and around ¥179, making these levels key areas of focus.
Correlation analysis over the past 24 hours between EUR/JPY and other currency pairs showed strong correlations with GBP/JPY, EUR/USD and GBP/USD, while Australian dollar-related pairs tended toward inverse correlation. In terms of currency strength, the Swiss franc was strongest recently, the Australian dollar was weakest, and the yen was slightly in negative territory as of this morning.
Today, 30 October, economic indicators include the BoJ Outlook Report, the BoJ monetary policy meeting, Governor Ueda’s press conference and EU GDP for July–September. Real-time EUR/JPY rates and correlation and relative-strength charts are available in the respective tools.