#EURJPY @ 147.856 is struggling in stretching its recovery above 148.00 ahead of Eurozone Retail Sales. (Pivot Orderbook analysis)

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• EUR/JPY is struggling in stretching its recovery above 148.00 ahead of Eurozone Retail Sales.
• ECB Lagarde announced ‘loud and clear’ that more than one additional rate hikes are in the pipeline.
• An exit from the ultra-loose monetary policy by the BoJ could bring a broader recovery in the Japanese Yen.

The pair currently trades last at 147.856.

The previous day high was 149.21 while the previous day low was 147.13. The daily 38.2% Fib levels comes at 147.92, expected to provide resistance. Similarly, the daily 61.8% fib level is at 148.41, expected to provide resistance.

The EUR/JPY pair is struggling in extending its recovery above the immediate resistance of 148.00 in the Asian session. The cross is experiencing pressure as investors are awaiting the release of Eurozone Retail Sales data (April).

On Thursday, the Euro went through a lot of pain after the European Central Bank (ECB) concluded the suspense and hiked interest rates by 25 basis points (bps) to 3.25%. The 50-bps rate hike spell by the ECB terminated and it went for a smaller interest rate hike as the Eurozone economy is meaningfully responding to the monetary policy.

The ECB went for a smaller interest rate hike amid a weak Eurozone growth rate and falling credit disbursement from Eurozone commercial banks as firms are failing to tackle the burden of higher borrowing costs and a bleak economic outlook.

However, in the monetary policy statement, ECB President Christine Lagarde announced ‘loud and clear’ that more than one additional rate hikes are in the pipeline as the fight against stubborn inflation is far from over.

Going forward, Eurozone Retail Sales will be keenly watched. As per the estimates, monthly Retail Sales have remained flat vs. a contraction of 0.8% recorded in March. The annual retail demand is seen extending its contraction to 3.1% from the former contraction of 3.0%.

On the Japanese Yen front, investors believe that an exit from the ultra-loose monetary policy by the Bank of Japan (BoJ) could bring a broader recovery in the Japanese Yen. However, Japan’s declining consumer inflation expectations are forcing the BoJ to maintain an expansionary policy stance.

Technical Levels: Supports and Resistances

EURJPY currently trading at 147.85 at the time of writing. Pair opened at 147.81 and is trading with a change of 0.03 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 147.47, 50 SMA 145.0, 100 SMA @ 143.18 and 200 SMA @ 142.69.

The previous day high was 149.21 while the previous day low was 147.13. The daily 38.2% Fib levels comes at 147.92, expected to provide resistance. Similarly, the daily 61.8% fib level is at 148.41, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 146.89, 145.97, 144.82
• Pivot resistance is noted at 148.97, 150.12, 151.04

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