Forex: EUR/JPY remains quiet as range bound behavior continues

FXstreet.com (Barcelona) - The EUR/JPY was fairly quiet today, closing up 5 pips at 128.26. Given the volatility in other assets such as commodities and equities, it was interesting to see the pair continue to trade in such a narrow range. Earlier this evening, the Bank of Japan released minutes from their latest meeting. Currently, the pair is slightly lower in Asia trade, down 25 pips at 128.10.

According to analysts at FXStreet.com, “The minutes from the Monetary Policy Meeting of the Bank of Japan held on April 3 and April 4 were just published. The report provides little new clues of interest, with the new "quantitative and qualitative monetary easing" program details details having being fully priced in by the market. In the official minutes report BOJ members agreed that the economy has shown signs of picking up. Japan also announced a monetary base of 23.1% (YoY) in April vs 19.8% in March.”

The FXStreet.com Trend Index remains slightly bearish on the daily chart, while the OB/OS Index remains neutral. Furthermore, the large “pennant” continuation patter on the daily chart continues to form between 127.00 (lower boundary) and 129.90 (upper boundary). A close below or above either of these levels should set the stage for the next major move.