EUR/JPY: Tiny ranges ahead of Thursday BoJ and ECB explosive cocktail

• Traders waiting for BoJ and ECB coming up on Thursday.

• EUR/JPY evolving in a 40 pips range in the US Session.

The EURJPY is trading at around 131.35 down 0.25% on the day. Earlier in the Asian session, we saw a flight to safety with traders buying the Yen after an article in the New York Times saaying that Cohn, top economic adviser in the Trump administration has decided to resign. 

The EUR/JPY is trading inside Yesterday’s range after 3 attempts above the 100-period simple moving average on the 15-minutes chart. With the Bank of Japan meeting coming up on Thursday and Friday traders seem to be cautious as to which direction to take. Coming up later on Wednesday is the Japanse set of data of the Gross Domestic Product which could trigger some volatility but hardly a game changer as traders will likely wait to hear what the Bank of Japan has to say before committing larger amounts of capital to either side. 

The Eurozone is also in the spotlight with the ECB meeting on Thursday, although apparently no major changes in guidance are expected according to analysts. Earlier on Wednesday Eurozone GDP came in line with expectation with no major repercussion on the EUR/JPY pair.

The EUR/JPY is trading in a 40-pip range in the US Session. Intraday support is seen at 131.25 pivot point and at the 131.00 figure. If the bulls manage to gather momentum they can hope to reach the 131.70 level which was a congestion area on Tuesday and a S1 pivot point. If the 131.20 is clearly broken a selloff to Tuesday’s low might be in the cards at 130.60.  

EURJPY 15-minutes chart