#EURJPY @ 140.539 dropped to a fresh multi-week low at 139.25 on Thursday. (Pivot Orderbook analysis)

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• EUR/JPY dropped to a fresh multi-week low at 139.25 on Thursday.
• Japanese government finally intervened in the FX market.
• The pair trades deep in negative territory despite latest rebound.

The pair currently trades last at 140.539.

The previous day high was 143.6 while the previous day low was 141.64. The daily 38.2% Fib levels comes at 142.39, expected to provide resistance. Similarly, the daily 61.8% fib level is at 142.85, expected to provide resistance.

EUR/JPY lost nearly 300 pips during the European trading hours and touched its lowest level in two weeks at 139.25 before staging a rebound. As of writing, the pair was trading at 140.58, where it was still down nearly 1% on a daily basis.

During the Asian trading hours, the Bank of Japan (BoJ) announced that it left the policy rate unchanged at -0.1% as expected and maintained the 10-year Japanese Government bond yield target at 0%. The BoJ’s inaction caused the Japanese yen to come under selling pressure and EUR/JPY climbed to a daily high of 143.70.

In a dramatic turn of events, Japan’s top currency diplomat Masato Kanda confirmed over that they have intervened in the FX market and JPY recorded impressive gains against its major rivals. With the initial reaction, USD/JPY lost 500 pips, CHF/JPY fell over 3% and GBP/JPY fell from 164.50 to a seven-week low of 159.65.

Japanese Finance Minister Shunichi Suzuki and Kanda are expected to brief reporters on the decision to intervene in the FX market at 0930 GMT.

Later in the day, the European Commission will release the preliminary Consumer Confidence data for September.

Technical Levels: Supports and Resistances

EURJPY currently trading at 140.64 at the time of writing. Pair opened at 141.75 and is trading with a change of -0.78 % .

The pair is trading below its 20 Daily moving average @ 141.44, above its 50 Daily moving average @ 139.2 , above its 100 Daily moving average @ 139.15 and above its 200 Daily moving average @ 135.49

The previous day high was 143.6 while the previous day low was 141.64. The daily 38.2% Fib levels comes at 142.39, expected to provide resistance. Similarly, the daily 61.8% fib level is at 142.85, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 141.06, 140.37, 139.1
• Pivot resistance is noted at 143.02, 144.29, 144.98

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