#EURJPY @ 143.304 has witnessed selling pressure around 143.50 on trending BOJ’s intervention warning. (Pivot Orderbook analysis)

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• EUR/JPY has witnessed selling pressure around 143.50 on trending BOJ’s intervention warning.
• It would be worth watching the response from the remaining G7 countries to BOJ’s intervention intentions.
• Investors are blaming the ECB for a delayed response to the inflation mess.

The pair currently trades last at 143.304.

The previous day high was 143.68 while the previous day low was 142.57. The daily 38.2% Fib levels comes at 143.26, expected to provide support. Similarly, the daily 61.8% fib level is at 142.99, expected to provide support.

The EUR/JPY pair has declined after sensing firmer hurdles around 143.50 in the early European session. The asset is expected to witness more weakness after dropping below the important cushion of 143.00. The asset has shifted into a correction mode after a warning from the Bank of Japan (BOJ) on intervention in Fx moves to provide support to the depreciating yen.

The Japanese administration is getting panic attacks over the vulnerable yen as it believes that the current price is not justifying its fundamentals. Therefore, the economy has decided to intervene in Fx moves in seldom. It would be worth watching the response from the central banks of other G7 countries. The depreciating domestic currency is impacting the imported-inputs-dependent companies, which are failing to counter the currency risk.

The economists at Nordea cited that the BOJ is needed to shift gears to a neutral stance on interest rates. The policy divergence of BOJ with other central banks is getting wider firmly, which is impacting the Japanese yen. An ultra-loose monetary policy is a major problem for the BOJ and the central bank should look upon revoking the same.

On the Eurozone front, the European Central Bank (ECB) policymakers seem unable to control the soaring price pressures. Investors are blaming the delayed response from the ECB towards bulking inflation rate. ECB President Christine Lagarde is expected to announce more rates further but still keep eye on data for more informed decisions.

Technical Levels: Supports and Resistances

EURJPY currently trading at 143.23 at the time of writing. Pair opened at 143.55 and is trading with a change of -0.22 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 140.21, 50 SMA 138.8, 100 SMA @ 138.91 and 200 SMA @ 135.19.

The previous day high was 143.68 while the previous day low was 142.57. The daily 38.2% Fib levels comes at 143.26, expected to provide support. Similarly, the daily 61.8% fib level is at 142.99, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 142.85, 142.15, 141.74
• Pivot resistance is noted at 143.97, 144.39, 145.09

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