EURJPY, which traded around the 155.20 level, has ended the week with a 300-pip gain.
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- EUR/JPY closes a 300-pips winning week, trading in the 155.20 area.
The pair currently trades last at 155.162.
The previous day high was 153.69 while the previous day low was 151.62. The daily 38.2% Fib levels comes at 152.9, expected to provide support. Similarly, the daily 61.8% fib level is at 152.41, expected to provide support.
At the end of the week, the EUR/JPY gained over 1%, soaring to a fresh cycle high of 155.20. In that sense, the ultra-dovish stance by the Bank of Japan (BoJ) vs. the hawkish messages from the European Central Bank (ECB) made on Thursday, where Christine Lagarde hinted at more hikes, seems to be giving the Euro traction.
The Bank of Japan (BoJ) recently concluded its two-day meeting without making any policy changes, just as the markets anticipated. The bank acknowledged that inflation expectations have remained relatively stable, but core inflation is slowing due to government measures aimed at reducing energy prices. The bank expects inflation to decelerate further by the middle of the fiscal year of 2023 and emphasized the need to monitor developments in financial and foreign exchange markets.
In the presser, Governor Ueda mentioned that different data between policy meetings could lead to varying outcomes, but any significant change in the inflation outlook could prompt a policy adjustment.
Looking forward, according to World Interest Rate Possibilities (WIRP), markets foresee a 15% probability of a policy shift in July, where an updated macro forecast will be released, then increasing to 25% in September, 45% in October, and 65% in December.
According to the daily chart, the EUR/JPY holds a bullish outlook for the short term as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that the buyers are in control while the pair holds above its main moving averages. However, both indicators suggest intensely overbought conditions as the pair gained more than 2% in the last two days and over 3% in the week, suggesting that a healthy correction may be necessary to consolidate gains.
Upcoming resistance for EUR/JPY is seen at the next round level at 155.30, followed by the 155.55 zone and the 156.00 area. On the other hand, the psychological mark at 153.35 is the immediate support level for the cross which could act as a support in case of a correction. A break below this level could pave the way towards the 153.00 area and then to the 152.00 zone
Technical Levels: Supports and Resistances
EURJPY currently trading at 155.19 at the time of writing. Pair opened at 153.58 and is trading with a change of 1.05 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 155.19 |
| 1 | Today Daily Change | 1.61 |
| 2 | Today Daily Change % | 1.05 |
| 3 | Today daily open | 153.58 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 150.14, 50 SMA 148.68, 100 SMA @ 145.75 and 200 SMA @ 144.43.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 150.14 |
| 1 | Daily SMA50 | 148.68 |
| 2 | Daily SMA100 | 145.75 |
| 3 | Daily SMA200 | 144.43 |
The previous day high was 153.69 while the previous day low was 151.62. The daily 38.2% Fib levels comes at 152.9, expected to provide support. Similarly, the daily 61.8% fib level is at 152.41, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 152.24, 150.89, 150.17
- Pivot resistance is noted at 154.31, 155.03, 156.38
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 153.69 |
| Previous Daily Low | 151.62 |
| Previous Weekly High | 150.44 |
| Previous Weekly Low | 148.63 |
| Previous Monthly High | 151.62 |
| Previous Monthly Low | 146.14 |
| Daily Fibonacci 38.2% | 152.90 |
| Daily Fibonacci 61.8% | 152.41 |
| Daily Pivot Point S1 | 152.24 |
| Daily Pivot Point S2 | 150.89 |
| Daily Pivot Point S3 | 150.17 |
| Daily Pivot Point R1 | 154.31 |
| Daily Pivot Point R2 | 155.03 |
| Daily Pivot Point R3 | 156.38 |
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