EUR/JPY ends week lower affected by a stronger yen

FXStreet (Córdoba) - EUR/JPY ended the week lower affected by a rally of the Japanese yen, that was favored by risk aversion.

Ending at the lows

The pair bottomed during the American session at 132.64, reaching the lowest since December 3 and consolidate below Thursday’s lows. From the level it had a week ago it lost 120 pips.

The decline so far can be seen as a correction. The week before, when the European Central Bank announced a rate cut in the deposit rate and an extension in the purchase program (market participants were expecting stronger stimulus measures), the euro jumped in the market and pushed EUR/JPY from 130.00 to 134.58. During the last few days the pair trimmed part of those gains after the rally was capped by the 134.50 area, where the 20-week MA stands.

Next week market attention will set exclusively on the FOMC meeting (Wednesday), whose actions are likely to impact on currencies. In Japan, the central bank will also held it monetary policy meeting (Friday), but no change in rates is expected.