#EURJPY @ 146.432 has displayed wild moves in a 143.75-147.27 range amid potential BOJ’s intervention chatters. (Pivot Orderbook analysis)

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• EUR/JPY has displayed wild moves in a 143.75-147.27 range amid potential BOJ’s intervention chatters.
• The BOJ is expected to continue its ultra-dovish monetary policy to support economic fundamentals.
• To combat mounting price pressures, the ECB may hike interest rates by 75 bps.

The pair currently trades last at 146.432.

The previous day high was 148.4 while the previous day low was 144.1. The daily 38.2% Fib levels comes at 145.75, expected to provide support. Similarly, the daily 61.8% fib level is at 146.76, expected to provide resistance.

The EUR/JPY pair has gyrated in a 143.75-147.27 range in the Tokyo session. The cross is displaying sheer volatility amid developments on the Bank of Japan (BOJ)’s intervention in the FX markets to support the Japanese yen against speculative moves. The asset is displaying wild moves after commentary from Japan’s top currency diplomat Masato Kanda.

Japan’s Kanda, on Monday, cited that the administration is ready to take necessary action 24*7 to support the Japanese yen against one-sided speculative moves in the currency market. Japanese officials denied commenting on their intervention in FX markets but promises to take necessary action against disorderly market moves.

It is worth noting that the asset displayed a knee-jerk reaction on Friday after overstepping the critical hurdle of 148.00.

This week, the BOJ’s monetary policy announcement will hog the limelight. Economic prospects are deteriorating in the Japanese economy amid external demand shocks, which may trigger a continuation of an ultra-dovish monetary policy. Last week, Japan’s inflation figures landed lower than their projections. The headline Consumer Price Index (CPI) dropped to 3.0% vs. the expectation of 3.1% and core CPI landed at 1.8% against 2.0% as projected.

On the Eurozone front, the shared currency bulls will dance to the tunes of an interest rate decision by the European Central Bank (ECB), which is due on Thursday. According to analysts from Rabobank, a 75 basis point (bps) interest rate hike is a done deal. They see the deposit rate reaching 3% by March next year.

Inflationary pressures in the trading bloc are not anchored yet, therefore, ECB President Christine Lagarde doesn’t possess other alternatives than to tighten its policy further.

On Friday, Reuters reported that German Parliament is preparing to vote for the approval of a €200 billion emergency rescue package to tackle the energy crisis.

Technical Levels: Supports and Resistances

EURJPY currently trading at 146.16 at the time of writing. Pair opened at 145.91 and is trading with a change of 0.17 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 143.11, 50 SMA 141.28, 100 SMA @ 140.51 and 200 SMA @ 136.88.

The previous day high was 148.4 while the previous day low was 144.1. The daily 38.2% Fib levels comes at 145.75, expected to provide support. Similarly, the daily 61.8% fib level is at 146.76, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 143.88, 141.84, 139.58
• Pivot resistance is noted at 148.18, 150.44, 152.48

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