#EURJPY @ 142.601 has dropped to near 142.50 despite ECB’s Lagarde refreshed fears of higher Eurozone inflation. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• EUR/JPY has dropped to near 142.50 despite ECB’s Lagarde refreshed fears of higher Eurozone inflation.
• The recent increase in financial market risks has made it more difficult for central banks to fight inflation.
• A major contribution to Japan’s inflation is coming from higher import prices.

The pair currently trades last at 142.601.

The previous day high was 142.79 while the previous day low was 140.42. The daily 38.2% Fib levels comes at 141.89, expected to provide support. Similarly, the daily 61.8% fib level is at 141.33, expected to provide support.

The EUR/JPY pair has extended its correction to near 142.50 in the early Tokyo session. The cross has dropped further as investors are shifting their focus toward the release of Japan’s National Consumer Price Index (CPI) data, which will release on Friday.

According to the consensus, annual headline CPI is expected to decline to 4.1% from the former release of 4.3%. While the core CPI that strips off oil and food prices is seen higher at 3.4% against the prior release of 3.2%.

Bank of Japan (BoJ) policymakers have been worried that the major contribution to Japan’s inflation is coming from higher import prices while the impact of domestic forces is absent. A Reuters Tankan survey showed that “Big Japanese manufacturers remained pessimistic about business conditions for a third straight month in March.” The sentiment index for big manufacturers stood at minus 3, slightly up from minus 5 seen in the previous month.

Meanwhile, European Central Bank (ECB) President Christine Lagarde has refreshed fears of higher inflation in the Eurozone citing “Inflation is still high and uncertainty around its path ahead has increased.” The commentary got more strength after Reuters reported, “The recent increase in financial market risks has made it more difficult for central banks to fight inflation,” the five “wise ones” who advise Berlin on economic policy said in their biannual report.

Wage growth and a recent revival in energy costs have been major drivers of persistent Eurozone inflation. And the cost-push inflation measures will continue to keep Eurozone inflation at elevated levels. Investors should brace for the continuation of bigger rate hikes from the ECB to tame the stubborn inflation ahead.

Technical Levels: Supports and Resistances

EURJPY currently trading at 142.62 at the time of writing. Pair opened at 142.66 and is trading with a change of -0.03 % .

The pair is trading below its 20 Daily moving average @ 143.46, above its 50 Daily moving average @ 142.17 , below its 100 Daily moving average @ 142.76 and above its 200 Daily moving average @ 141.82

The previous day high was 142.79 while the previous day low was 140.42. The daily 38.2% Fib levels comes at 141.89, expected to provide support. Similarly, the daily 61.8% fib level is at 141.33, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 141.13, 139.59, 138.75
• Pivot resistance is noted at 143.5, 144.33, 145.87

[/s2If]
Join Our Telegram Group