The EURJPY pair dropped below the 20-day Simple Moving Average (SMA) and approached a level around 155.70.
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- The EUR/JPY fell below the 20-day SMA towards the 155.70 area.
The pair currently trades last at 155.768.
The previous day high was 157.8 while the previous day low was 156.24. The daily 38.2% Fib levels comes at 156.84, expected to provide resistance. Similarly, the daily 61.8% fib level is at 157.21, expected to provide resistance.
On Tuesday, the EUR/JPY cross trades with losses for the second day in a row as the Euro weakened on negative the release of negative IFO indexes. On the other hand, the Japanese Cabinet Office released a fresh inflation forecast while markets await the new Bank of Japan (BoJ) projections on Friday.
Germany reported soft IFO indexes. The Business Climate Survey came in at 87.3, lower than the 88 expected and the previous 88.6, and the Current Assessment, dropped to 91.3, below the 93 expected and the last 93.7. The Expectations index was 83.5, higher than the 83 expected but below the previous 83.8.
As a reaction, the EUR is trading losses against most of its rivals, including the USD, GBP, CHF and AUD. In addition, ahead of Thursday’s European Central Bank (ECB) meeting, the 2-year German bond yield dropped to 3.21%, which applied further pressure on the Euro. Regarding the decision, markets await a 25 basis point (bps) hike, but the odds of another hike in September fell to 50% according to the World Interest Rate Probabilities (WIRP) tool. However, the odds of hikes in October and December are largely priced in. In that sense, the bank’s messaging will be critical.
The Japanese Cabinet Office published its longer-term macroeconomic estimates, and in its baseline scenario, it expects headline inflation to be around 0.7% from FY27 to FY32. The report also presented a more optimistic growth scenario in which inflation reaches 2% by FY26 and remains there for the remainder of the 10-year horizon. This comes ahead of Friday’s Bank of Japan (BoJ) meeting, where markets expect policymakers to maintain their dovish stance and updated macroeconomic projections.
In addition, the JPY got a boost on the announcements of China (its leading trading partner) taking up economic policies to bolster economic activity.
After losing the 20-day Simple Moving Average (SMA) on the daily chart, further downside may be on the horizon. In addition, technical indicators are pointing south, with the Relative Strength Index (RSI) pointing south near its midline. At the same time, the Moving Average Convergence Divergence (MACD) printed a rising red bar, suggesting that the bears are in command for the short term.
Support level: 156.00, 155.50, 155.00.
Resistance levels: 156.40 (20-day SMA), 157.00, 157.50.
Technical Levels: Supports and Resistances
EURJPY currently trading at 155.87 at the time of writing. Pair opened at 156.53 and is trading with a change of -0.42 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 155.87 |
| 1 | Today Daily Change | -0.66 |
| 2 | Today Daily Change % | -0.42 |
| 3 | Today daily open | 156.53 |
The pair is trading below its 20 Daily moving average @ 156.42, above its 50 Daily moving average @ 153.37 , above its 100 Daily moving average @ 149.42 and above its 200 Daily moving average @ 146.31
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 156.42 |
| 1 | Daily SMA50 | 153.37 |
| 2 | Daily SMA100 | 149.42 |
| 3 | Daily SMA200 | 146.31 |
The previous day high was 157.8 while the previous day low was 156.24. The daily 38.2% Fib levels comes at 156.84, expected to provide resistance. Similarly, the daily 61.8% fib level is at 157.21, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 155.91, 155.3, 154.35
- Pivot resistance is noted at 157.47, 158.42, 159.03
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 157.80 |
| Previous Daily Low | 156.24 |
| Previous Weekly High | 158.05 |
| Previous Weekly Low | 154.88 |
| Previous Monthly High | 158.00 |
| Previous Monthly Low | 148.62 |
| Daily Fibonacci 38.2% | 156.84 |
| Daily Fibonacci 61.8% | 157.21 |
| Daily Pivot Point S1 | 155.91 |
| Daily Pivot Point S2 | 155.30 |
| Daily Pivot Point S3 | 154.35 |
| Daily Pivot Point R1 | 157.47 |
| Daily Pivot Point R2 | 158.42 |
| Daily Pivot Point R3 | 159.03 |
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