#EURJPY @ 146.907 The euro appreciates again on Thursday to test seven-year highs at 147.25. (Pivot Orderbook analysis)

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• The euro appreciates again on Thursday to test seven-year highs at 147.25.
• Yen weakness has boosted speculation of BoJ intervention.
• Monetary policy divergence is crushing yen demand.

The pair currently trades last at 146.907.

The previous day high was 147.26 while the previous day low was 146.08. The daily 38.2% Fib levels comes at 146.53, expected to provide support. Similarly, the daily 61.8% fib level is at 146.81, expected to provide support.

The euro is crawling higher again on Thursday after the previous day’s reversal, and the pair has regained lost ground to retest the resistance area at 147.25 on the US morning session.

The battered Japanese currency maintains its negative tone across the board. The USD/JPY crossed the psychological 150.00 mark earlier on Thursday, reaching its highest level in 32 years and boosting speculation of a potential intervention by the Bank of Japan to curb JPY weakness.

The Japanese authorities reiterated their commitment to defend the yen’s stability on Thursday. Masato Kanda, a top currency diplomat assured that the Japanese Government is ready to take action “as excessive volatility becomes increasingly unacceptable.”

In the long run, however, the yen remains under pressure on the back of the monetary policy divergence between the BoJ and the rest of the major world central banks, especially the US Federal Reserve.

The Fed is widely expected to increase rates by 0.75% for the fourth consecutive time in November and, according to a recent poll by Reuters, the ECB might also approve a 75-basis-points hike next week. In this scenario, the Japanese central bank’s ultra-expansive policy is crushing demand for the Japanese currency.

Technical Levels: Supports and Resistances

EURJPY currently trading at 146.98 at the time of writing. Pair opened at 146.56 and is trading with a change of 0.29 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 142.41, 50 SMA 140.9, 100 SMA @ 140.38 and 200 SMA @ 136.72.

The previous day high was 147.26 while the previous day low was 146.08. The daily 38.2% Fib levels comes at 146.53, expected to provide support. Similarly, the daily 61.8% fib level is at 146.81, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 146.0, 145.45, 144.82
• Pivot resistance is noted at 147.18, 147.81, 148.36

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