#EURJPY @ 149.562 has moved above 149.50 after a sideways performance fueled by hawkish ECB bets. (Pivot Orderbook analysis)

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• EUR/JPY has moved above 149.50 after a sideways performance fueled by hawkish ECB bets.
• ECB Lagarde is expected to raise interest rates despite significant deceleration in Eurozone inflation.
• The BoJ is expected to tweak its YCC for keeping inflation steadily above 2%.

The pair currently trades last at 149.562.

The previous day high was 149.68 while the previous day low was 148.62. The daily 38.2% Fib levels comes at 149.28, expected to provide support. Similarly, the daily 61.8% fib level is at 149.03, expected to provide support.

The EUR/JPY pair has climbed above the immediate resistance of 149.50 in the Asian session. The cross remained sideways but is looking to extend its upside as hawkish European Central Bank (ECB) bets are still solid despite softening of Eurozone inflation in May.

After a sheer deceleration in Germany, France, and Spain’s inflation, Eurozone inflation carry-forwarded the trail and reported lower-than-anticipated Harmonized Index of Consumer Prices (HICP) figures as individuals are surrendering luxuries due to higher cost of living. Monthly headline HICP remained flat vs. former expansion of 0.6% while annual HICP decelerated heavily to 6.1% from the estimates of 6.3% and the former release of 7.0%.

In addition to that, monthly core inflation expanded by 0.2% at an extremely slower pace against estimates of 0.8%. Annual core HICP softened to 5.3% from the estimates of 5.5%. ECB policymakers are still worried about persistence in core inflation.

A sheer slowdown in Eurozone inflationary pressures and a recession situation in Germany divided investors that the ECB could consider a pause in its June monetary policy meeting. However, ECB President Christine Lagarde said in an appearance on Thursday, “We need to continue our hiking cycle until we are sufficiently confident that inflation is on track to return to our target in a timely manner.”

On the Japanese Yen front, a volatile action is expected as the Bank of Japan (BoJ) is expected to tweak its Yield Curve Control (YCC) for keeping inflation steadily above 2%. Also, BoJ Governor Kazu Ueda cited that bond-buying operations will continue ahead.

Technical Levels: Supports and Resistances

EURJPY currently trading at 149.54 at the time of writing. Pair opened at 149.38 and is trading with a change of 0.11 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 148.99, 50 SMA 147.25, 100 SMA @ 144.72 and 200 SMA @ 143.92.

The previous day high was 149.68 while the previous day low was 148.62. The daily 38.2% Fib levels comes at 149.28, expected to provide support. Similarly, the daily 61.8% fib level is at 149.03, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 148.77, 148.17, 147.72
• Pivot resistance is noted at 149.83, 150.28, 150.89

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