#EURJPY @ 146.674 rallied more than 1.40% on Monday due to an upbeat sentiment. (Pivot Orderbook analysis)

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• EUR/JPY rallied more than 1.40% on Monday due to an upbeat sentiment.
• The cross-currency pair printed a new eight-year high at 146.71.
• Negative divergence in the EUR/JPY daily opens the door for a mean reversion fall to 145.00; otherwise, a test of 147.00 is on the cards.

The pair currently trades last at 146.674.

The previous day high was 144.85 while the previous day low was 143.48. The daily 38.2% Fib levels comes at 144.32, expected to provide support. Similarly, the daily 61.8% fib level is at 144.0, expected to provide support.

The EUR/JPY prints a fresh eight-year high at around 146.71, courtesy of broad Japanese yen weakness, as the Bank of Japan (BoJ) pledges to its dovish stance, despite other Japanese authorities’ verbal intervention in the FX markets, saying that exchange rates must reflect fundamentals. At the time of writing, the EUR/JPY is trading at 146.67.

The EUR/JPY edges higher, breaking to fresh YTD highs, though the last leg-up appears to be happening with insufficient strength, as shown by the Relative Strength Index (RSI). The RSI in the EUR/JPY daily chart suggests that buyers are losing momentum, with RSI registering lower peaks, contrary to the cross-currency pair price action, printing higher highs. Therefore, in the near term, the EUR/JPY could fall toward the 145.00 figure before the EUR/JPY continues to extend its gains.

If that scenario plays out, the EUR/JPY first support would be 146.00. Break below will expose the September 12 daily high of 145.63, followed by the 145.00 target.

On the flip side, the EUR/JPY first resistance would be 147.00. Once cleared, the following key resistance levels would be the December 20134 high of 149.78, followed by the July 2008 high of 169.96.

Technical Levels: Supports and Resistances

EURJPY currently trading at 146.68 at the time of writing. Pair opened at 144.58 and is trading with a change of 1.45 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 141.83, 50 SMA 140.34, 100 SMA @ 140.11 and 200 SMA @ 136.48.

The previous day high was 144.85 while the previous day low was 143.48. The daily 38.2% Fib levels comes at 144.32, expected to provide support. Similarly, the daily 61.8% fib level is at 144.0, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 143.76, 142.93, 142.39
• Pivot resistance is noted at 145.13, 145.67, 146.5

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