#EURJPY @ 140.364 The recovery move from has met resistance at 141.60 and has dropped to near 140.50. (Pivot Orderbook analysis)

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• The recovery move from EUR/JPY has met resistance at 141.60 and has dropped to near 140.50.
• ECB Lagrade is expected to continue her sheer hawkish stance on the interest rate policy despite Credit Suisse’s turmoil.
• Japan Kishida is aiming to raise minimum wages beyond JPY¥1,000 to sustain inflation above the desired target.

The pair currently trades last at 140.364.

The previous day high was 144.96 while the previous day low was 139.48. The daily 38.2% Fib levels comes at 143.69, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.25, expected to provide resistance.

The EUR/JPY pair has surrendered the immediate support of 141.00 as the debate over the continuation 50 basis points (bps) interest rate hike by the European Central Bank (ECB) is getting ugly. After the debacle of Credit Suisse due to its ‘material weakness’ in internal controls over financial reporting, the street believes that a global banking crisis is brewing and the ECB could slow down its pace of hiking interest rates.

Considering the stubborn inflation in the Eurozone economy led by resilient consumption and tight labor demand, ECB President Christine Lagarde is expected to continue her sheer hawkish stance on the interest rate policy. Therefore, a consecutive third 50 bps rate is expected in the interest rate decision by the ECB.

Reuters reported that “Despite the turmoil in the banking sector, policymakers expect inflation to remain too high in the Eurozone.” Additionally, the Governing Council doesn’t want to damage its credibility by ditching the 50 bps rate increase after having repeatedly noted that this was their intention.

Considering the statement from Credit Suisse chairman Axel Lehmann that state assistance “isn’t a topic” for the bank as it seeks to recover from a string of scandals that have undermined the confidence of investors and clients, Bloomberg reported, the downfall of Credit Suisse is not expected to heal sooner.

On the Japanese Yen front, Bank of Japan (BoJ) policymakers and Japanese officials are pulling their socks to provide a cushion to inflation to remain steady above the 2% target. Japan’s PM Fumio Kishida said on Wednesday that they are aiming to raise minimum wages beyond JPY¥1,000 nationwide. Superlative wage gains are going to add effectively to the upside filters for the inflationary pressures as households will be equipped with more funds for disposal.

Technical Levels: Supports and Resistances

EURJPY currently trading at 140.9 at the time of writing. Pair opened at 141.1 and is trading with a change of -0.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 143.94, 50 SMA 142.12, 100 SMA @ 143.03 and 200 SMA @ 141.82.

The previous day high was 144.96 while the previous day low was 139.48. The daily 38.2% Fib levels comes at 143.69, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.25, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 142.92, 141.79, 141.04
• Pivot resistance is noted at 144.8, 145.54, 146.67

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