#EURJPY @ 150.022 is looking delicate around 150.00 as the focus shifts to ECB Lagarde’s speech. (Pivot Orderbook analysis)
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- EUR/JPY is looking delicate around 150.00 as the focus shifts to ECB Lagarde’s speech.
- ECB policymakers are supporting more interest rate hikes as Eurozone core inflation is still persistent.
- The BoJ is expected to intervene in the currency markets to provide some cushion to the Japanese Yen.
The pair currently trades last at 150.022.
The previous day high was 149.96 while the previous day low was 149.25. The daily 38.2% Fib levels comes at 149.69, expected to provide support. Similarly, the daily 61.8% fib level is at 149.52, expected to provide support.
The EUR/JPY pair is struggling in defending the auction above the psychological support of 150.00 in the European session. The cross is expected to remain on the tenterhooks as investors are awaiting the speech from European Central Bank (ECB) President Christine Lagarde before the European Parliament.
ECB Lagarde is expected to provide guidance about the likely monetary policy action in June’s monetary policy meeting. The street is convinced that the ECB will hike interest rates further despite the sheer softening of Eurozone inflation.
An in-depth investigation of the Eurozone’s May inflation report showed that headline price pressures slowed dramatically amid declining energy prices and food inflation while core inflation is still stubborn. Sticky core inflation makes the case stronger for more interest rate hikes by the ECB. Also, ECB policymaker, Boštjan Vasle, said on Friday, “More rate hikes needed to get inflation to the 2% target.” He further added, “Core inflation remains high and persistent.”
In addition to ECB Vasle, ECB Governing Council member, Gabriel Makhlouf, said that they are “likely to see another rate increase at the next meeting.“ He further added a fall in Eurozone inflation is welcomed but is not definitive with underlying pressures quite strong. It is likely that we will see another rate increase at the next meeting as the ECB has not reached the moment where it can say let’s now stop.
Meanwhile, the Japanese Yen is making efforts to get an upper hand as the Bank of Japan (BoJ) is expected to intervene to provide some cushion to the domestic currency. According to the latest Reuters report, bets against the Japanese Yen have risen to $8.6 billion equivalent, which was a similar level when Japan’s authorities intervened last year.
Going forward, Japan’s Q1 Gross Domestic Product (GDP) will remain in the spotlight. Thursday’s GDP data is expected to expand by 0.5% vs. prior expansion of 0.4% on a quarterly basis. Annualized Q1 GDP is seen steady at 1.6%.
Technical Levels: Supports and Resistances
EURJPY currently trading at 150.0 at the time of writing. Pair opened at 149.78 and is trading with a change of 0.15 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 150.00 |
| 1 | Today Daily Change | 0.22 |
| 2 | Today Daily Change % | 0.15 |
| 3 | Today daily open | 149.78 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 149.05, 50 SMA 147.43, 100 SMA @ 144.84 and 200 SMA @ 143.99.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 149.05 |
| 1 | Daily SMA50 | 147.43 |
| 2 | Daily SMA100 | 144.84 |
| 3 | Daily SMA200 | 143.99 |
The previous day high was 149.96 while the previous day low was 149.25. The daily 38.2% Fib levels comes at 149.69, expected to provide support. Similarly, the daily 61.8% fib level is at 149.52, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 149.36, 148.95, 148.65
- Pivot resistance is noted at 150.08, 150.38, 150.79
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 149.96 |
| Previous Daily Low | 149.25 |
| Previous Weekly High | 151.07 |
| Previous Weekly Low | 148.59 |
| Previous Monthly High | 151.62 |
| Previous Monthly Low | 146.14 |
| Daily Fibonacci 38.2% | 149.69 |
| Daily Fibonacci 61.8% | 149.52 |
| Daily Pivot Point S1 | 149.36 |
| Daily Pivot Point S2 | 148.95 |
| Daily Pivot Point S3 | 148.65 |
| Daily Pivot Point R1 | 150.08 |
| Daily Pivot Point R2 | 150.38 |
| Daily Pivot Point R3 | 150.79 |
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