The EURJPY currency pair, with a value of 156.375, is trading within a small range slightly above the 156.00 region.

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• EUR/JPY oscillates in a narrow band above the 156.00 area.

The pair currently trades last at 156.375.

The previous day high was 157.21 while the previous day low was 155.84. The daily 38.2% Fib levels comes at 156.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 156.36, expected to provide support.

The EUR/JPY pair consolidates in a narrow range between 156.60 and 156.20 heading into the European session. The Bank of Japan (BoJ) has maintained its ultra-dovish policy stance, and the European Central Bank (ECB) is expected to raise interest rates by 25 basis points (bps) to 4% in the next meeting.

The final reading of the Eurozone Core Harmonized Index of Consumer Prices (HICP) rose 0.4% MoM for June versus 0.3% prior and above the market consensus. Markets have priced in a 25 basis point (bps) hike for the next ECB meeting, with the odds of a hike in September hovering around 65%.

On the other hand, Japan’s trade balance surprised with its first surplus since July 2021, easing pressure on the economy’s recovery. That said, the nation’s trade surplus came to ¥43 billion. Market consensus had forecast a ¥46.7 billion deficit. The value of exports rose 1.5%, while Imports fell 12.9%.

The Bank of Japan (BOJ) Governor Kazuo Ueda stated on Tuesday that there was still some way to go before reaching the 2% inflation target, per Reuters.

It’s worth noting that the renewed trade war tensions between the US-China might cap the upside in the Euro and support the safe-haven Japanese Yen (JPY). Market participants will keep an eye on Sino-US relations for fresh impetus.

Looking ahead, market participants will keep an eye on the Bank of Japan’s (BoJ) interest rate decision scheduled for next week. BoJ Governor Kazuo Ueda is expected to maintain a dovish policy stance in order to keep inflation steady at approximately 2%. Meanwhile, the French and German Purchasing Managers’ Index (PMI) and the Monetary Policy Statement will be due later next week.

Technical Levels: Supports and Resistances

EURJPY currently trading at 156.3 at the time of writing. Pair opened at 156.37 and is trading with a change of -0.04 % .

The pair is trading below its 20 Daily moving average @ 156.41, above its 50 Daily moving average @ 152.81 , above its 100 Daily moving average @ 149.06 and above its 200 Daily moving average @ 146.13

The previous day high was 157.21 while the previous day low was 155.84. The daily 38.2% Fib levels comes at 156.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 156.36, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 155.74, 155.11, 154.38
• Pivot resistance is noted at 157.1, 157.84, 158.46

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