FxWirePro: Euro might test recent low against yen

Euro is sharply down against Yen, covering most of the gains post-ECB disappointment. Yen is playing largest part to the decline today. Bank of Japan (BOJ) unveiled new sets of stimulus (tweak actually), which includes, increase the maturity of JGB portfolio from current 7-10 years to new 7-12 years. This has been good for bonds, however other measure which is increase in buying by ¥300 billion per annum in ETF, linked to Japax Nikkei 400 index is very miniscule just 10% of current ETF program and just 0.375% of overall buying.

Yen might gain further if equity collapse.

Euro, on the other hand once again got rejected around 1.087 against Dollar today and dropped to 1.082 against Dollar.

It is now looking it is more likely that Euro would test recent, pre-ECB low against Yen and equity selloffs could push it even beyond.