#EURJPY @ 141.233 has slipped after sensing selling interest around 141.50 ahead of Tokyo inflation. (Pivot Orderbook analysis)

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• EUR/JPY has slipped after sensing selling interest around 141.50 ahead of Tokyo inflation.
• Tokyo’s headline CPI is seen at 4.4% while the core CPI might scale to 2.8%.
• The ECB is constantly reiterating the need for further policy tightening to contain the inflation mess.

The pair currently trades last at 141.233.

The previous day high was 142.21 while the previous day low was 141.26. The daily 38.2% Fib levels comes at 141.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.84, expected to provide resistance.

The EUR/JPY pair is facing pressure in extending its recovery move above the immediate resistance of 141.50 in the early Tokyo session. The cross attempted a recovery below 141.00 on Wednesday after a massive sell-off move. The Euro faced immense pressure after the release of the German IFO- Business Climate (Jan) data. The economic data remained in line with the estimates at 90.2 but higher than the former release of 88.6.

German IFO Business Survey, the institute’s Economist Klaus Wohlrabe cited that “the German economy is starting the year with cautious optimism.” He added that the economy might not face any recession but the Gross Domestic Product (GDP) will probably shrink slightly in Q1 – mainly due to consumption. It is worth noting that 48.4% of companies complained in Jan about supply bottlenecks vs. 50.7% in Dec.

For further policy tightening European Central Bank (ECB) President Christine Lagarde and other policymakers are continuously reiterating the need for further interest rate hikes to contain the inflation mess.

ECB Governing Council member Gabriel Makhlouf said on Wednesday “We need to continue to increase rates at our meeting next week – by taking a similar step to our December decisions,” as reported by Reuters. He further added that they need to increase rates again at the March meeting.

On the Tokyo front, investors will be focusing on the release of the Tokyo inflation, which is scheduled for Friday. The headline Tokyo Consumer Price Index (CPI) (Jan) is seen higher at 4.4% vs. the former release of 4.0%. Also, the core inflation that excludes oil and food prices is expected to increase marginally to 2.8% against the 2.7% released earlier.

Technical Levels: Supports and Resistances

EURJPY currently trading at 141.34 at the time of writing. Pair opened at 141.63 and is trading with a change of -0.2 % .

The pair is trading above its 20 Daily moving average @ 140.45, below its 50 Daily moving average @ 142.34 , below its 100 Daily moving average @ 143.16 and above its 200 Daily moving average @ 140.82

The previous day high was 142.21 while the previous day low was 141.26. The daily 38.2% Fib levels comes at 141.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.84, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 141.19, 140.75, 140.24
• Pivot resistance is noted at 142.14, 142.65, 143.09

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