#EURJPY @ 143.712 bulls are attempting to crack the upper quarter of 143s. (Pivot Orderbook analysis)

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• EUR/JPY bulls are attempting to crack the upper quarter of 143s.
• The Euro is benefiting due to the central bank divergence.

The pair currently trades last at 143.712.

The previous day high was 144.01 while the previous day low was 142.16. The daily 38.2% Fib levels comes at 143.3, expected to provide support. Similarly, the daily 61.8% fib level is at 142.86, expected to provide support.

EUR/JPY is lower at the start of the week, down some 0.12% and has been pressured to a low of 143.69 so far having slipped from a high of 144.07. Hotter-than-expected data has helped the US Dollar to strengthen against many of its major peers this week, leaving the crosses somewhat in consolidation.

EUR/JPY remains between familiar range boundaries although the upside has been in play for the most part as traders aim to break into the 144s. The divergence between the central banks has been supporting the Euro over of the Yen with European Central Bank last hiking hawkishly, as it all but confirms a third 50bp hike in March. ”Although the ECB may slow down after next month, Lagarde signalled that March will not mark the final hike. We have raised our forecast accordingly,” analysts at Rabobank explained. ”We expect a 50bp hike in March, followed by two 25bp hikes in Q2 to a terminal rate of 3.50%.”

As for the Bank of Japan, the incoming Governor has not been ruffling too many market feathers. He thinks the right path forwards is to continue monetary easing while devising ways to respond to the current situation, Jit Juckes at Societe Generale said.

”In other words, we should expect more tinkering with yield curve control, but not tighter monetary policy. Yen bulls got no help from Mr Ueda, nor did they get any from the latest weekly securities flow data. The only thing preventing USD/JPY from continuing to retrace towards 140 is the dip in Treasury yields yesterday.”

Technical Levels: Supports and Resistances

EURJPY currently trading at 143.76 at the time of writing. Pair opened at 143.88 and is trading with a change of -0.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 142.16, 50 SMA 141.34, 100 SMA @ 143.12 and 200 SMA @ 141.46.

The previous day high was 144.01 while the previous day low was 142.16. The daily 38.2% Fib levels comes at 143.3, expected to provide support. Similarly, the daily 61.8% fib level is at 142.86, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 142.69, 141.49, 140.83
• Pivot resistance is noted at 144.54, 145.2, 146.4

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