#EURJPY @ 144.767 The euro plunges from a seven-year high of 148.25 to 144.75. (Pivot Orderbook analysis)

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• The euro plunges from a seven-year high of 148.25 to 144.75.
• All signs point out to a BoJ intervention.
• Volatility levels soar in all yen crosses.

The pair currently trades last at 144.767.

The previous day high was 147.3 while the previous day low was 146.24. The daily 38.2% Fib levels comes at 146.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 146.64, expected to provide resistance.

The euro plummeted about 2.5% in a matter of minutes during Friday’s North American trading session on suspected intervention by the Japanese economic authorities. The pair retreated from seven-year highs at 148.25 to 144.75 area at the time of writing

In the absence of any relevant fundamental element to justify the move, all signs point out to a market intervention By the Bank of Japan and the Ministry of Finance to protect the Japanese currency.

Different officials of the Bank of Japan had been reiterating the Japanese authorities’ commitment to step in as the yen declined to fresh multi-year lows against its main peers. On Thursday Masato Kanda, a top currency diplomat assured that the Japanese Government is ready to take action “as excessive volatility becomes increasingly unacceptable.”

Currency analysts, however, remain skeptical about the effectiveness of currency interventions while the fundamental reasons keep underpinning dollar demand, especially with the monetary policy differential between the Federal Reserve and the Bank of Japan.

Technical Levels: Supports and Resistances

EURJPY currently trading at 145.24 at the time of writing. Pair opened at 147.0 and is trading with a change of -1.2 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 142.76, 50 SMA 141.1, 100 SMA @ 140.45 and 200 SMA @ 136.8.

The previous day high was 147.3 while the previous day low was 146.24. The daily 38.2% Fib levels comes at 146.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 146.64, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 146.39, 145.78, 145.33
• Pivot resistance is noted at 147.45, 147.91, 148.52

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