The currency pair EURJPY, at a rate of 157.407, experienced back-to-back days of decline as it approached the 157.40 level.
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- EUR/JPY tallied a second consecutive day of losses, dropping towards 157.40.
The pair currently trades last at 157.407.
The previous day high was 158.0 while the previous day low was 157.23. The daily 38.2% Fib levels comes at 157.52, expected to provide resistance. Similarly, the daily 61.8% fib level is at 157.71, expected to provide resistance.
The EUR/JPY pair extended its losses for a second consecutive day, sliding towards 157.40. Strong Retail Sales data from Japan contributed to the Japanese Yen gaining ground. Despite hot inflation figures reported in Germany, with CPI rising to 6.4% (versus 6.3% expected), and in Spain, with CPI reaching 1.9% (versus 1.7% expected), the EUR/JPY pair remained under pressure, but rising German yields limited the Euro’s downside potential.
Retail sales in Japan showed positive results in May, with a notable increase of 1.3% compared to expectations of 0.8%. This positive momentum follows a revised figure of 1.1% in April, previously reported as a decline of -1.2%. Year-on-year, Retail Sales surged by 5.7%, surpassing expectations of 5.2% and reflecting an upward revision from the revised 5.1% in April.
It’s worth noticing that Kazuo Ueda, Bank of Japan’s (BoJ) Governor, retained a cautious stance during his speech at the European Central Bank’s Sintra Forum on Wednesday, highlighting that the underlying inflation remains below the target set by the BoJ. He further expressed his intention to evaluate policy adjustments only when inflationary pressures align with the central bank’s forecasts. As strong economic data may contribute to a rise in inflationary pressures, the Tokyo Consumer Price Index (CPI) from June and May’s Unemployment rate, both out on Friday, will be closely watched by investors.
On the Euro’s side, German bond yields increased after the hot inflation figures from Germany and Spain. The 2 and 5-year yields rose by 2.48% and 4.75% to 3.26% and 2.60%, limiting the European currency’s losses.
According to the daily chart analysis, the EUR/JPY pair maintains a positive outlook, although the bullish momentum has temporarily paused. Despite two consecutive days of losses, the Relative Strength Index (RSI) remains in overbought territory since mid-June so there may be still more room for downside movements.
On the downside, support levels line up at 157.00, 156.50, and 156.00. On the flip side, if bulls regain momentum, there are resistance levels to monitor at 158.00, 158.50, and 159.00.
Technical Levels: Supports and Resistances
EURJPY currently trading at 157.4 at the time of writing. Pair opened at 157.68 and is trading with a change of -0.18 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 157.40 |
| 1 | Today Daily Change | -0.28 |
| 2 | Today Daily Change % | -0.18 |
| 3 | Today daily open | 157.68 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 153.03, 50 SMA 150.48, 100 SMA @ 147.1 and 200 SMA @ 145.02.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 153.03 |
| 1 | Daily SMA50 | 150.48 |
| 2 | Daily SMA100 | 147.10 |
| 3 | Daily SMA200 | 145.02 |
The previous day high was 158.0 while the previous day low was 157.23. The daily 38.2% Fib levels comes at 157.52, expected to provide resistance. Similarly, the daily 61.8% fib level is at 157.71, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 157.27, 156.87, 156.5
- Pivot resistance is noted at 158.04, 158.4, 158.81
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 158.00 |
| Previous Daily Low | 157.23 |
| Previous Weekly High | 156.93 |
| Previous Weekly Low | 154.05 |
| Previous Monthly High | 151.62 |
| Previous Monthly Low | 146.14 |
| Daily Fibonacci 38.2% | 157.52 |
| Daily Fibonacci 61.8% | 157.71 |
| Daily Pivot Point S1 | 157.27 |
| Daily Pivot Point S2 | 156.87 |
| Daily Pivot Point S3 | 156.50 |
| Daily Pivot Point R1 | 158.04 |
| Daily Pivot Point R2 | 158.40 |
| Daily Pivot Point R3 | 158.81 |
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