#EURJPY @ 142.651 has recovered firmly to near 142.80 as Japan approaches BoJ’s Amamiya as a successor of BoJ’s Kuroda. (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 has recovered firmly to near 142.80 as Japan approaches BoJ’s Amamiya as a successor of BoJ’s Kuroda.
• A spell of a contraction in Eurozone Retail Sales might continue amid higher interest rates by the ECB.
• The ECB is expected to hike interest rates in May further after a 50 bps interest rate hike in March.

The pair currently trades last at 142.651.

The previous day high was 142.34 while the previous day low was 139.93. The daily 38.2% Fib levels comes at 141.42, expected to provide support. Similarly, the daily 61.8% fib level is at 140.85, expected to provide support.

The EUR/JPY pair has displayed a sharp recovery move after correcting to near 142.00 in the Asian session. The cross has recovered to near its intraday high around 142.80 as Japan’s administration is trying to rope in Bank of Japan (BoJ) Deputy Governor Masayoshi Amamiya to succeed Haruhiko Kuroda as the head of the central bank, according to a report from Nikkei, reported by Bloomberg.

The nominations for the successor of BoJ’s Kuroda will be finalized in February and discussions about an exit from the decade-long ultra-loose monetary policy will get more fire.

The BoJ has already widened the yield curve to provide more flexibility. Last week, BoJ Deputy Governor Masazumi Wakatabe cited that “BoJ’s Dec decision to widen band was a necessary step to make YCC more sustainable, but the move alone may have had the effect of weakening stimulus effect.”

On the Eurozone front, investors are awaiting the release of the Retail Sales data for fresh impetus. The economic data is expected to contract by 2.7% from a prior contraction of 2.8% on an annual basis. The monthly data is seen contracting by 2.5% against an expansion of 0.8% reported earlier.

The Eurozone economy is recording a contraction in consumer spending consecutively for the past five months, which will delight the European Central Bank (ECB) ahead as it will scale down Consumer Price Index (CPI) projections.

For the interest rate guidance, ECB Governing Council member Pierre Wunsch told Reuters on Friday that the ECB won’t go from a 50 basis points (bps) rate hike in March to a zero in May. Wunsch added that a 25 bps or a 50 bps hike is possible in May.

Technical Levels: Supports and Resistances

EURJPY currently trading at 142.75 at the time of writing. Pair opened at 141.55 and is trading with a change of 0.85 % .

The pair is trading above its 20 Daily moving average @ 140.78, above its 50 Daily moving average @ 141.76 , below its 100 Daily moving average @ 142.98 and above its 200 Daily moving average @ 140.98

The previous day high was 142.34 while the previous day low was 139.93. The daily 38.2% Fib levels comes at 141.42, expected to provide support. Similarly, the daily 61.8% fib level is at 140.85, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 140.21, 138.86, 137.8
• Pivot resistance is noted at 142.62, 143.69, 145.03

[/s2If]
Join Our Telegram Group