EUR/JPY fading its 200 DMA ahead of BoJ minutes

• Bank of Japan minutes scheduled on Tuesday at 23.50 GMT.
• Eurozone CPI data scheduled on Friday at 10.00 GMT.

The EUR/JPY is trading at around 131.30 after traders bought the Yen earlier in the day on the back of a political scandal in Japan which apparently triggered a flight to safety.

Coming up next are the BoJ minutes which are scheduled on Tuesday at 23.50 GMT. Last week Kuroda made some dovish comments saying that the BoJ will continue its monetary easing until they reach their 2% target.

EUR/JPY weekly chart

The EUR/JPY seem to have found support at its 200-period weekly SMA. Last week trading was virtually a mirror of the prior week which indicates that the market is for now in balance. The weekly RSI is trading is just below the 50 level. 

EUR/JPY daily chart

The EUR/JPY on the daily chart is somewhat displaying a triangle compression with Friday and today’s price action rejecting the 200-period SMA. 

EUR/JPY 4-hour chart

The EUR/JPY is failing to maintain momentum above the 100-period SMA. Key resistance is seen at the 132.00 psychological level as the market failed repeatedly to breakout about the level. Further up, the next key resistance is the 50% Fibonacci retracement at 133.50. To the downside, support is seen at 130.50 cyclical low and 50 pips lower to the psychological level of 130.00, which was also the middle of a trading range.