#EURJPY @ 143.953 renews intraday low, extends previous day’s losses. (Pivot Orderbook analysis)

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• EUR/JPY renews intraday low, extends previous day’s losses.
• Hopes of upbeat growth prospects for Germany and Eurozone keep Euro buyers hopeful.
• Downbeat yields, hopes of BoJ’s exit from easy money policies weigh on prices.
• Second readings of March PMIs eyed for further directions, risk catalysts are the key.

The pair currently trades last at 143.953.

The previous day high was 144.94 while the previous day low was 143.63. The daily 38.2% Fib levels comes at 144.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.13, expected to provide resistance.

EUR/JPY remains depressed near 144.00 while defending bears early Wednesday. In doing so, the cross-currency pair fails to cheer upbeat growth signals from the Eurozone amid weaker Treasury bond yields, as well as hopes of the Bank of Japan’s (BoJ) exit from the ultra-easy monetary policy and the receding odds of the European Central Bank’s (ECB) further aggression in rate hikes.

On Tuesday, Eurozone Producer Price Index (PPI) fell 0.5% MoM and 13.2% YoY in February, versus -2.8% and 15.1% respectively priors. That said, Germany’s Trade Balance also remained static near €16B during the stated month versus market forecasts of €17B.

However, Reuters cited sources who have seen the so-called Joint Economic Forecasts, to be presented in Berlin on Wednesday, to mention that the German economy is likely to narrowly skirt recession and post modest growth in the first quarter of the year.

On the same line could be the ECB monthly survey of consumer expectations that suggested an easing in inflation and improvement in growth, as well as an easing in the unemployment rate, for the next 12 months.

Above all, the market’s rush towards bonds drowned the Treasury yields and join the hawkish chatters surrounding the BoJ to weigh on the EUR/JPY prices of late.

Against this backdrop, Wall Street closed with minor losses but the US Treasury bond yields remain depressed with the benchmark 10-year coupons holding lower grounds near 3.34% after falling in the last five consecutive days.

Looking forward, the second readings of Japan’s Jibun Bank Manufacturing PMI and S&P Global PMIs for the Eurozone can direct immediate EUR/JPY moves. However, major attention should be given to the risk catalysts and yields for a clear guide.

Repeated failures to cross a descending resistance line from October 2022, close to 144.85 by the press time, directs EUR/JPY towards a convergence of the 21-DMA and 50-DMA, around 142.80.

Technical Levels: Supports and Resistances

EURJPY currently trading at 144.06 at the time of writing. Pair opened at 144.29 and is trading with a change of -0.16% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 142.86, 50 SMA 142.7, 100 SMA @ 142.55 and 200 SMA @ 141.85.

The previous day high was 144.94 while the previous day low was 143.63. The daily 38.2% Fib levels comes at 144.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.13, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 143.63, 142.97, 142.32
• Pivot resistance is noted at 144.95, 145.6, 146.26

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