#EURJPY @ 149.352 trades with losses for a second consecutive day. (Pivot Orderbook analysis)
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- EUR/JPY trades with losses for a second consecutive day.
- Weak EU data weights on the Euro.
- Expectations about BoJ’s monetary policy stance following wage data from Japan may limit the JPY’s upside potential.
The pair currently trades last at 149.352.
The previous day high was 150.2 while the previous day low was 149.23. The daily 38.2% Fib levels comes at 149.6, expected to provide resistance. Similarly, the daily 61.8% fib level is at 149.83, expected to provide resistance.
The Euro weakened against its major pairs on Tuesday fueled by weak economic data from the European Union (EU) and Germany. On the other hand, the Yen gains may be limited by de BoJ’s (Bank of Japan)stance following Wage data from Japan which suggests that the bank will maintain its loose monetary policy.
In April, Germany experienced a decline in factory orders and retail sales, which was a cause for concern. Factory orders dropped by 0.4% month-on-month, falling short of the expected growth of 2.8%. This decline followed a revised decrease of 10.9% in March (initially reported as -10.7%). On the other hand, Retail Sales, stagnated in April vs the 0.2% expansion expected and after a 0.4% contraction in March.
German yields weakened across the curve as European Central Bank (ECB) president Christine Lagarde, commented on Monday that monetary policy decisions will remain data dependent. In that sense, weak economic data may make ECB officials reconsider further rate hikes following the June meeting. For next week, a rate hike is already priced in. That being said, the 10-year bond yield fell to 2.35% seeing a 0.86 % fall on the day, while the 2-year yield sits at 2.87% with a 0.97 % decline and the 5-year yielding 2.36% with a 0.86 % slide respectively.
On the other hand, Labor Cash Earning data from Japan indicated that wages rose by only 1.0% annually, down from 1.3% in March, and significantly below the consensus forecast of 1.8% growth. “The latest wage data from Japan will have been disappointing for the BoJ who are looking for stronger wage growth to support a sustained pick-up in inflation towards their 2.0% target”, said MUFG Bank analysts. They see the numbers reiforzing expectations that the central bank will maintain its currency loose monetary policy in June.
The EUR/JPY has a neutral outlook for the short term as indicators turned flat on the daily chart. The Relative Strength Index (RSI) stands above its midline but the Moving Average Convergence Divergence (MACD) continues to print red bars, indicating that there is not a clear dominance in the market.
On the upside, a move above the 149.60 zone would suggest a continuation of the bullish trend for the EUR/JPY, with the next resistances at the 149.85 area and the 150.00 zone. On the downside, immediate support levels are seen at the 20-day Simple Moving Average (SMA) at 149.12, followed by the 148.50 area and the 148.00 zone.
Technical Levels: Supports and Resistances
EURJPY currently trading at 149.35 at the time of writing. Pair opened at 149.54 and is trading with a change of -0.13 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 149.35 |
| 1 | Today Daily Change | -0.19 |
| 2 | Today Daily Change % | -0.13 |
| 3 | Today daily open | 149.54 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 149.1, 50 SMA 147.58, 100 SMA @ 144.94 and 200 SMA @ 144.04.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 149.10 |
| 1 | Daily SMA50 | 147.58 |
| 2 | Daily SMA100 | 144.94 |
| 3 | Daily SMA200 | 144.04 |
The previous day high was 150.2 while the previous day low was 149.23. The daily 38.2% Fib levels comes at 149.6, expected to provide resistance. Similarly, the daily 61.8% fib level is at 149.83, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 149.12, 148.69, 148.15
- Pivot resistance is noted at 150.08, 150.62, 151.05
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 150.20 |
| Previous Daily Low | 149.23 |
| Previous Weekly High | 151.07 |
| Previous Weekly Low | 148.59 |
| Previous Monthly High | 151.62 |
| Previous Monthly Low | 146.14 |
| Daily Fibonacci 38.2% | 149.60 |
| Daily Fibonacci 61.8% | 149.83 |
| Daily Pivot Point S1 | 149.12 |
| Daily Pivot Point S2 | 148.69 |
| Daily Pivot Point S3 | 148.15 |
| Daily Pivot Point R1 | 150.08 |
| Daily Pivot Point R2 | 150.62 |
| Daily Pivot Point R3 | 151.05 |
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