#EURJPY @ 140.190 is comfortably established above 140.00 after hawkish guidance by ECB Lagarde. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• EUR/JPY is comfortably established above 140.00 after hawkish guidance by ECB Lagarde.
• German energy market regulators are preparing stockpiles ahead of the winter season.
• Japan’s labor market data is expected to remain upbeat ahead.

The pair currently trades last at 140.190.

The previous day high was 139.55 while the previous day low was 138.61. The daily 38.2% Fib levels comes at 138.97, expected to provide support. Similarly, the daily 61.8% fib level is at 139.19, expected to provide support.

The EUR/JPY pair has established above the psychological resistance of 140.00 as the risk-on market profile favored risk-sensitive currencies. The asset has turned sideways and is awaiting more market participants for making bullish bets. On Wednesday, the shared currency bulls rebound firmly after dropping to near 138.00. The cross delivered an upside break of the four-day long consolidation formed in a 137.38-139.53 range.

It seems that investors have shrugged-off uncertainty over the energy stockpiles ahead of the winter season, which soars the energy demand to run electrical appliances. Earlier, the Eurozone bulls were facing tremendous pressure after reporting a deliberate attack on the infrastructure of the Nord Stream 1 pipeline. German administration is preparing sufficient energy stockpiles ahead of the winter season and a decline in the same will deepen the energy crisis further.

Also, the speech from European Central Bank (ECB) President Christine Lagarde strengthened the shared continent bulls. ECB Lagarde sees rate hikes by 125 basis points (bps) in upcoming several meetings.

Going forward, investors will focus on the Eurozone Consumer Confidence data. As per the preliminary estimates, the sentiment data will remain steady at -28.8. It is worth noting that the economic data is getting more vulnerable over the past year.

On the Tokyo front, investors have shrugged off the impact of the Bank of Japan (BOJ)’s intervention in the currency markets to support the depreciating yen. The market participants believe that the impact of intervention remains short-lived, therefore, only restrictive measures could be a tailwind for the Japanese yen.

This week, the Japanese employment data will hog the limelight. The Unemployment Rate is expected to decline to 2.5% vs. the prior release of 2.6%. While the Jobs/Applicants Ratio will improve to 1.30 against the 1.29 reported earlier.

Technical Levels: Supports and Resistances

EURJPY currently trading at 140.31 at the time of writing. Pair opened at 138.91 and is trading with a change of 1.01 % .

The pair is trading below its 20 Daily moving average @ 141.74, above its 50 Daily moving average @ 139.14 , above its 100 Daily moving average @ 139.23 and above its 200 Daily moving average @ 135.7

The previous day high was 139.55 while the previous day low was 138.61. The daily 38.2% Fib levels comes at 138.97, expected to provide support. Similarly, the daily 61.8% fib level is at 139.19, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 138.5, 138.09, 137.57
• Pivot resistance is noted at 139.44, 139.96, 140.37

[/s2If]
Join Our Telegram Group