#EURJPY @ 144.377 A risk-off impulse kept the from reaching a fresh YTD high at around the 146.00 psychological figure. (Pivot Orderbook analysis)

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• A risk-off impulse kept the EUR/JPY from reaching a fresh YTD high at around the 146.00 psychological figure.
• EUR/JPY’s failure to re-test the 145.63 sent the pair tumbling below the 145.00 mark.
• Short term, the EUR/JPY might be headed downwards, but upside risks remain once the pair clears 145.00.

The pair currently trades last at 144.377.

The previous day high was 145.64 while the previous day low was 143.1. The daily 38.2% Fib levels comes at 144.67, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.07, expected to provide support.

The EUR/JPY opens Wednesday’s Asian Pacific session with decent gains of 0.24%, after Tuesday’s 0.34% loss, courtesy of a risk-off impulse when data from the US flashed inflation decelerating less than estimates, fueling possibilities for a US Fed 75 bps rate hike. At the time of writing, the EUR/JPY is trading at 144.41.

On Tuesday, the EUR/JPY rallied towards the new YTD high reached on Monday at 145.63 but fell short and dived below the 145.00 figure. That, alongside a minimal negative divergence between the EUR/JPY price action and the RSI, could open the door for a fall towards the September 12 daily low at 143.37, ahead of the 143.00 figure.

Short term, the EUR/JPY is neutral-to-downward biased. Even though a negative divergence emerged, EUR/JPY consolidated in the 144.15-145.00 range, with the 20-EMA at 144.15, being the first demand zone, which, once cleared, would pave the way for further losses.

If the above scenario plays out, the EUR/JPY’s next support would be the confluence of the 50-EMA and the daily pivot at around 142.14/19. Break below will expose the 100-EMA at 139.98, ahead of the S1 daily pivot at 139.67.

On the other hand, if the EUR/JPY clears the September 13 high at 145.37, a YTD high re-test is on the cards.

Technical Levels: Supports and Resistances

EURJPY currently trading at 144.41 at the time of writing. Pair opened at 144.61 and is trading with a change of -0.12 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.24, 50 SMA 138.52, 100 SMA @ 138.69 and 200 SMA @ 134.97.

The previous day high was 145.64 while the previous day low was 143.1. The daily 38.2% Fib levels comes at 144.67, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.07, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 143.26, 141.92, 140.73
• Pivot resistance is noted at 145.8, 146.98, 148.33

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