The EURJPY currency pair, currently standing at 155.884, received backing as it reached a low point of 154.84 and subsequently settled around 156.90, managing to maintain some slight upward movement.

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• EUR/JPY found support at a low of 154.84 and then stabilised near 156.90 holding to mild gains.

The pair currently trades last at 155.884.

The previous day high was 156.34 while the previous day low was 155.1. The daily 38.2% Fib levels comes at 155.57, expected to provide support. Similarly, the daily 61.8% fib level is at 155.87, expected to provide support.

The EUR/JPY regained momentum during the American Session and jumped back towards 155.90 from a low of 154.84. On the downside, lower German yields limit the Euro’s upside potential, while the JPY seems to be struggling to gain momentum due to the Bank of Japan’s (BoJ) expectations to maintain its dovish stance next week.

European Central Bank (ECB) officials delivered mixed signals regarding the next monetary policy moves past July. Klaas Knot argued that hikes beyond July are possible but not a “certainty” as he stated that the bank must carefully rely on the upcoming data. In addition, Nagel argued, “We will see, the data will tell us” regarding the September decision. According to the World Interest Rates Probabilities (WIRP), a 25 basis point (bps) hike is already priced in for next week’s meeting and the odds of a hike stand at nearly 60% for the September meeting and at 80% for the December meeting.

That being said, German yields have significantly decreased across the board on Tuesday. The 2-year yield dropped to 3.22% while the 5 and 10-year rates to 2.52% and 2.36%, respectively, seeing more than 3% declines. In that sense, lower yields are not allowing the Euro to gain traction.

On the Japanese front, BoJ’s Governor, Kazuo Ueda, is expected to maintain a dovish stance in the next week’s central bank meeting and maintain steady its inflation forecast. In the meantime, the JPY seems to weaken on monetary policy divergences agains its major rivals.

The daily chart suggests that slowly the outlook starts to favour the bulls in the short term, and sellers struggle to gain momentum. However, the 20-day Simple Moving Average (SMA) is a strong barrier for the bulls, which must be regained to regain momentum. Meanwhile, the Relative Strength Index (RSI) stands neutral above its midline, while the Moving Average Convergence Divergence (MACD) prints decreasing red bars.

Resistance levels: 156.35 ( 20-day SMA), 157.00, 158.00.
Support levels: 155.00, 154.50.154.00.

Technical Levels: Supports and Resistances

EURJPY currently trading at 155.91 at the time of writing. Pair opened at 155.83 and is trading with a change of 0.05 % .

The pair is trading below its 20 Daily moving average @ 156.31, above its 50 Daily moving average @ 152.48 , above its 100 Daily moving average @ 148.83 and above its 200 Daily moving average @ 145.99

The previous day high was 156.34 while the previous day low was 155.1. The daily 38.2% Fib levels comes at 155.57, expected to provide support. Similarly, the daily 61.8% fib level is at 155.87, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 155.17, 154.52, 153.93
• Pivot resistance is noted at 156.42, 157.0, 157.66

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