#EURJPY @ 143.271 is oscillating below 143.40 ahead of ECB Lagarde’s speech. (Pivot Orderbook analysis)

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• EUR/JPY is oscillating below 143.40 ahead of ECB Lagarde’s speech.
• ECB policymakers believe that current interest rates are near to neutral rate.
• The BOJ may look for more easing to accelerate the economy’s growth in times of lower inflation.

The pair currently trades last at 143.271.

The previous day high was 143.62 while the previous day low was 141.44. The daily 38.2% Fib levels comes at 142.79, expected to provide support. Similarly, the daily 61.8% fib level is at 142.27, expected to provide support.

The EUR/JPY pair is displaying a lackluster performance in early Asia as investors are awaiting the speech from European Central Bank (ECB) President Christine Lagarde for fresh impetus. The cross is hovering around the critical hurdle of 143.40 and is likely to remain sideways amid the unavailability of a fresh trigger.

The speech from ECB President is going to provide fresh cues about the likely monetary policy action. Meanwhile, ECB policymakers delivered similar responses on interest rate guidance on Tuesday. ECB Chief Economist Phillip Lane is dubious about the inflation peak as it has been achieved or is still to come next year. He further added that he expects more rate hikes ahead but “a lot has been done already”.

While, Constantinos Herodotou, Governor of the Central Bank of Cyprus said that “There will be another hike in rates, but we are very near neutral rate.”

On the Japanese yen front, Bank of Japan (BOJ) Governor Haruhiko Kuroda is not ready to call for a termination of policy easing till wag inflation reaches around 3% to push inflation sustainably to the 2% target, as reported by Reuters. The BOJ is bound to keep flushing liquidity into the economy until the economy gets strengthened as desired.

For further guidance, the release of Japan’s Gross Domestic Product (GDP) data will provide significant cues. As per the projections, Japan’s GDP is expected to contract by 1.1% against the prior contraction of 1.2%. While the quarterly data is likely to contract by 0.3%, similar to the prior release. A contraction in Japan’s GDP in times when the economy is struggling to push inflation higher may force more policy easing measures by the BOJ.

Technical Levels: Supports and Resistances

EURJPY currently trading at 143.28 at the time of writing. Pair opened at 143.47 and is trading with a change of -0.13 % .

The pair is trading below its 20 Daily moving average @ 144.38, below its 50 Daily moving average @ 144.43 , above its 100 Daily moving average @ 141.81 and above its 200 Daily moving average @ 139.2

The previous day high was 143.62 while the previous day low was 141.44. The daily 38.2% Fib levels comes at 142.79, expected to provide support. Similarly, the daily 61.8% fib level is at 142.27, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 142.07, 140.66, 139.89
• Pivot resistance is noted at 144.25, 145.02, 146.43

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