The EURJPY pair has achieved a new 15-year high of 156.00 due to Bank of Japan’s extremely accommodating policy being extended.

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• EUR/JPY has registered a fresh 15-year high at 156.00 as BoJ’s ultra-dovish policy will continue further.

The pair currently trades last at 156.367.

The previous day high was 155.92 while the previous day low was 154.3. The daily 38.2% Fib levels comes at 155.3, expected to provide support. Similarly, the daily 61.8% fib level is at 154.92, expected to provide support.

The EUR/JPUY pair has climbed vertically above the crucial resistance of 156.00 in the European session. The cross has printed a fresh 15-year high at 156.32 as the Bank of Japan (BoJ) is expected to keep the interest rate policy dovish for a longer period.

The majority of the contribution to higher Japan’s inflation is coming from costly raw materials imported by firms, which indicates that the high-inflation environment is not domestically supported. The Bank of Japan (BoJ) has been keeping the interest rate policy expansionary to accelerate wages and spurt domestic demand.

The efforts of escalating wages by the BoJ through monetary stimulus are showing positive results. In the latest monthly assessment of Japan’s economy, the government has noted a decline in the jobless rate and the positive impact of bigger wage rises awarded by major firms, as reported by Reuters. Special thanks to capital expenditure and consumer spending that the labor market conditions are “recovering moderately”.

Meanwhile, BoJ policymaker Asahi Noguchi has warned that the effect of costly imported goods could disappear around September. He further added central bank must continue lower interest rates to ensure inflation remains well-supported above 2% through higher wages.

The Euro is in an upside momentum as Inflationary pressures in Eurozone are thrice the required rate of 2%. To achieve price stability, European Central Bank (ECB) President Christine Lagarde has already confirmed one more interest rate hike in July.

Technical Levels: Supports and Resistances

EURJPY currently trading at 156.34 at the time of writing. Pair opened at 155.9 and is trading with a change of 0.28 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 151.27, 50 SMA 149.47, 100 SMA @ 146.3 and 200 SMA @ 144.67.

The previous day high was 155.92 while the previous day low was 154.3. The daily 38.2% Fib levels comes at 155.3, expected to provide support. Similarly, the daily 61.8% fib level is at 154.92, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 154.83, 153.76, 153.22
• Pivot resistance is noted at 156.45, 156.99, 158.06

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