The EURJPY currency pair has experienced a decline for four consecutive days, and is now preparing for its first weekly loss in four weeks.
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- EUR/JPY prints four-day losing streak, braces for the first weekly loss in four.
The pair currently trades last at 156.019.
The previous day high was 157.18 while the previous day low was 155.84. The daily 38.2% Fib levels comes at 156.35, expected to provide resistance. Similarly, the daily 61.8% fib level is at 156.67, expected to provide resistance.
EUR/JPY renews its intraday low around 156.25, portraying the four-day losing streak heading into Friday’s European session.
The cross-currency pair’s latest weakness could be linked to the downbeat German data, as well as the market’s risk-off mood, and the concerns about Japan’s intervention to defend the Yen (JPY). In doing so, the quote ignores hawkish comments from European Central Bank (ECB) President Christine Lagarde while failing to justify dovish bias at the Bank of Japan (BoJ).
Germany’s Industrial Production for May shrinks by 0.2% MoM versus the market expectations of posting 0.1% growth. That said, industrial Production grew 0.3% in April.
On the other hand, ECB President Lagarde defends her hawkish bias while saying, “We still have work to do to bring inflation back down to our target.”
It should be noted that Japanese officials have repeatedly shown readiness to take measures to defend the Yen in case of severe moves after the Asian currency refreshed yearly tops in the last week. Additionally favoring the JPY is the early-day release of firmer Japan wage growth data for May, as well as recently published upbeat preliminary figures of the Coincident Index and Leading Economic Index for May.
Furthermore, talks of the BoJ’s exit from easy monetary policy and the Yield Curve Control (YCC) have also gained major attention of late and weigh on the EUR/JPY prices, even if the BoJ officials have ruled out the need for any such measures in the near term.
Amid these plays, the US stock futures and Asia-Pacific shares remain pressured while tracing Wall Street’s losses. Further, the Treasury bond yields edge higher following a run-up to refresh a three-month top by the US 10-year and two-year bond coupons.
Looking ahead, a speech from ECB President Christine Lagarde is up for release during the US session and will direct the intraday EUR/JPY moves. Before that, the risk catalysts and BoJ chatters may entertain the momentum traders.
A daily closing beneath the previous resistance line stretched from late February, around 157.05 by the press time, directs EUR/JPY bears towards the 155.35-30 support confluence comprising the 21-DMA and tops marked during June 18-20.
Technical Levels: Supports and Resistances
EURJPY currently trading at 156.33 at the time of writing. Pair opened at 156.89 and is trading with a change of -0.36% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 156.33 |
| 1 | Today Daily Change | -0.56 |
| 2 | Today Daily Change % | -0.36% |
| 3 | Today daily open | 156.89 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 155.33, 50 SMA 151.65, 100 SMA @ 148.01 and 200 SMA @ 145.54.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 155.33 |
| 1 | Daily SMA50 | 151.65 |
| 2 | Daily SMA100 | 148.01 |
| 3 | Daily SMA200 | 145.54 |
The previous day high was 157.18 while the previous day low was 155.84. The daily 38.2% Fib levels comes at 156.35, expected to provide resistance. Similarly, the daily 61.8% fib level is at 156.67, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 156.1, 155.31, 154.77
- Pivot resistance is noted at 157.43, 157.97, 158.76
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 157.18 |
| Previous Daily Low | 155.84 |
| Previous Weekly High | 158.00 |
| Previous Weekly Low | 155.75 |
| Previous Monthly High | 158.00 |
| Previous Monthly Low | 148.62 |
| Daily Fibonacci 38.2% | 156.35 |
| Daily Fibonacci 61.8% | 156.67 |
| Daily Pivot Point S1 | 156.10 |
| Daily Pivot Point S2 | 155.31 |
| Daily Pivot Point S3 | 154.77 |
| Daily Pivot Point R1 | 157.43 |
| Daily Pivot Point R2 | 157.97 |
| Daily Pivot Point R3 | 158.76 |
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