The EURJPY pair remains strong for a second day in a row and is trading near the highest level of the day.
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- EUR/JPY stays firmer for the second consecutive day, grinds near intraday top of late.
The pair currently trades last at 156.253.
The previous day high was 155.61 while the previous day low was 151.41. The daily 38.2% Fib levels comes at 154.0, expected to provide support. Similarly, the daily 61.8% fib level is at 153.01, expected to provide support.
EUR/JPY extends the previous day’s rebound from a six-week low while rising past the 156.00 hurdle, up 0.41% intraday near 156.15-20 heading into Monday’s European session. In doing so, the cross-currency pair justifies the weekend comments from European Central Bank (ECB) President Christine Lagarde, as well as mixed Japan data and the Bank of Japan’s (BoJ) latest action.
BoJ conducts the first special bond-buying since February on early Monday, worth 300 billion Yen, with a 5-10 year residual maturity. That said, the preliminary readings of Japan’s Industrial Production for June eased to 2.0% MoM versus 2.4% market forecasts and -2.2% previous readings while the YoY figures drop to -0.4% from 4.2% prior. Further, Retail Trade improved to 5.9% YoY in June but the seasonally adjusted (s.a.) figures slump to -0.4% from 1.3% marked in May versus 0.2% expected.
On the other hand, ECB President Christine Lagarde termed the latest economic output numbers from France, Germany and Spain as “quite encouraging” while speaking to French daily Le Figaro during the weekend. On Friday, Germany’s Bundesbank President and ECB Governing Council member Joachim Nagel cited stubborn core inflation to defend the hawkish ECB policies while suggesting higher interest rates for longer.
Apart from Japan, Eurozone moves, optimism about China stimulus and upbeat yields also underpin the EUR/JPY run-up ahead of German Retail Sales and the first readings of the Eurozone inflation data for July, per the Harmonized Index of Consumer Prices, as well as the second-quarter (Q2) seasonally adjusted Gross Domestic Product (GDP).
On Friday, the EUR/JPY jumped as the Bank of Japan (BoJ) defied the market’s expectations of announcing an immediate tweak to its Yield Curve Control (YCC) policy by keeping the monetary policy measured unchanged. The Japanese central bank (BoJ), however, pledged to make YCC more flexible and drowned the JPY after an initial run-up in the Yen.
Following the monetary policy decision, Bank of Japan (BOJ) Governor Kazuo Ueda said that they “need to patiently continue monetary easing to support the economy.” BoJ’s Ueda also added that the decision is aimed at making YCC more sustainable. The same statement from BoJ Governor Ueda also got credence from Japanese Chief Cabinet Hirokazu Matsuno. It’s worth noting that BoJ’s Ueda showed readiness to take necessary steps if interest rates rise beyond 1.0%.
EUR/JPY pair’s rebound from an upward-sloping support line from early May, around 153.40, aims for another battle with the one-month-old falling resistance line, close to 157.75 at the latest.
Technical Levels: Supports and Resistances
EURJPY currently trading at 156.15 at the time of writing. Pair opened at 155.51 and is trading with a change of 0.41% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 156.15 |
| 1 | Today Daily Change | 0.64 |
| 2 | Today Daily Change % | 0.41% |
| 3 | Today daily open | 155.51 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 155.89, 50 SMA 153.85, 100 SMA @ 149.85 and 200 SMA @ 146.47.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 155.89 |
| 1 | Daily SMA50 | 153.85 |
| 2 | Daily SMA100 | 149.85 |
| 3 | Daily SMA200 | 146.47 |
The previous day high was 155.61 while the previous day low was 151.41. The daily 38.2% Fib levels comes at 154.0, expected to provide support. Similarly, the daily 61.8% fib level is at 153.01, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 152.75, 149.98, 148.55
- Pivot resistance is noted at 156.95, 158.38, 161.14
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 155.61 |
| Previous Daily Low | 151.41 |
| Previous Weekly High | 157.80 |
| Previous Weekly Low | 151.41 |
| Previous Monthly High | 158.00 |
| Previous Monthly Low | 148.62 |
| Daily Fibonacci 38.2% | 154.00 |
| Daily Fibonacci 61.8% | 153.01 |
| Daily Pivot Point S1 | 152.75 |
| Daily Pivot Point S2 | 149.98 |
| Daily Pivot Point S3 | 148.55 |
| Daily Pivot Point R1 | 156.95 |
| Daily Pivot Point R2 | 158.38 |
| Daily Pivot Point R3 | 161.14 |
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