EUR/JPY through the roof on JP stimulus news, tests 117

The EUR/JPY cross witnessed a sudden bout of buying interest over the last hour, after the yen got aggressively sold into renewed talks about the Japanese stimulus.

EUR/JPY awaits Abe’s announcement on stimulus

The EUR/JPY pair jumps +1.68% at 116.85, having test daily high near 117 handle. The EUR/JPY cross spiked higher and almost tested 117 barrier, before meeting fresh offers near the last. However, the cross remains strongly bid on the back of a sharp rally in USD/JPY, after news hit the wires that the Japanese stimulus package size is expected to be 27 trln yen and also that Abe will announce the details of the stimulus package later today.

Moreover, moderate gains seen in EUR/USD also add to the latest bullish momentum seen behind the cross. Meanwhile,  focus will remain on Abe’s announcement ahead of the eagerly awaited FOMC decision due out later in the NA session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 117 (key resistance/50-DMA) and from there to 117.50 (psychological levels). On the flip side, support is seen at 116.16/11 (Jul 22 & 21 low) below which it could extend losses to towards 115.04 (20-DMA).