The EURJPY pair recovered from its lowest point of the day at 157.22 and settled at approximately 157.60.
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- The EUR/JPY rebounded from a daily low of 157.22 and stabilised around 157.60.
The pair currently trades last at 157.645.
The previous day high was 157.94 while the previous day low was 156.39. The daily 38.2% Fib levels comes at 157.35, expected to provide support. Similarly, the daily 61.8% fib level is at 156.98, expected to provide support.
On Tuesday, the EUR/JPY found support at the 157.42 area and then jumped to the 157.60 area still trading with losses. Meanwhile, German bond yields trade in the red, weakened by soft Italian inflation figures and weak German confidence data, but recovered some losses. Conversely, Kazuo Ueda from the Bank of Japan (BoJ) focused on inflation being below target and maintained its dovish stance.
On Wednesday, Christine Lagarde made a statement suggesting that if the current situation remains unchanged, it is highly probable that there will be an interest rate hike in July. She emphasised that she does not contemplate a pause in the near future. As a result, the German 2-year bond yield, which had initially experienced a decline, managed to bounce back from its daily lows of 3.16% to 3.20%. This development was primarily driven by investors’ renewed interest in the German bond market, leading to increased demand for the Euro currency.
However, German yields weakened in the yearly European session after the report of Italian figures from June. The Consumer Price Index (CPI) dropped below the consensus to 6.4% vs the 6.8% expected from its previous reading of 7.6%. In addition, Germany reported weak Consumer Confidence data at the early European session as the Growth from Knowledge (GfK) survey came in at -25.4 in July, from a downward revised -24.4 in June.
On the other hand, Ueda maintained its dovish tone stating “underlying inflation is below target” and that he’ll consider a policy change once inflationary pressures align with the Bank of Japan (BoJ) forecasts.
Based on the daily chart analysis, the EUR/JPY’s positive outlook is intact, and the bulls took a slight breather. However, it is still important to consider the possibility of a correction, as indicated by the Relative Strength Index (RSI) remaining in the overbought territory since mid-June.
If a technical correction, support levels are 157.00, 156.50, and 156.00. These levels are significant round numbers and could provide support for the cross. On the other hand, if bulls regain momentum, there are resistance levels to monitor at 158.00, 158.50, and 159.00.
Technical Levels: Supports and Resistances
EURJPY currently trading at 157.61 at the time of writing. Pair opened at 157.92 and is trading with a change of -0.2 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 157.61 |
| 1 | Today Daily Change | -0.31 |
| 2 | Today Daily Change % | -0.20 |
| 3 | Today daily open | 157.92 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 152.59, 50 SMA 150.28, 100 SMA @ 146.93 and 200 SMA @ 144.94.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 152.59 |
| 1 | Daily SMA50 | 150.28 |
| 2 | Daily SMA100 | 146.93 |
| 3 | Daily SMA200 | 144.94 |
The previous day high was 157.94 while the previous day low was 156.39. The daily 38.2% Fib levels comes at 157.35, expected to provide support. Similarly, the daily 61.8% fib level is at 156.98, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 156.9, 155.87, 155.35
- Pivot resistance is noted at 158.44, 158.97, 159.99
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 157.94 |
| Previous Daily Low | 156.39 |
| Previous Weekly High | 156.93 |
| Previous Weekly Low | 154.05 |
| Previous Monthly High | 151.62 |
| Previous Monthly Low | 146.14 |
| Daily Fibonacci 38.2% | 157.35 |
| Daily Fibonacci 61.8% | 156.98 |
| Daily Pivot Point S1 | 156.90 |
| Daily Pivot Point S2 | 155.87 |
| Daily Pivot Point S3 | 155.35 |
| Daily Pivot Point R1 | 158.44 |
| Daily Pivot Point R2 | 158.97 |
| Daily Pivot Point R3 | 159.99 |
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