#EURJPY @ 159.967 gains momentum around the 160.00 psychological figure on Wednesday.

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• EUR/JPY gains momentum around the 160.00 psychological figure on Wednesday.

The pair currently trades last at 159.967.

The previous day high was 160.85 while the previous day low was 157.98. The daily 38.2% Fib levels comes at 159.75, expected to provide support. Similarly, the daily 61.8% fib level is at 159.07, expected to provide support.

The EUR/JPY cross holds positive ground during the early European session on Wednesday. The cross hovers around the 160.00 psychological mark after retracing from the fresh 15-year highs of 160.85. That being said, the disappointed Bank of Japan’s (BoJ) decision to maintain the ultra-loose policy exerts pressure on the Japanese Yen (JPY). However, the verbal intervention from Japanese policymakers might cap the downside of the JPY.

On Tuesday, the BoJ committee decided to keep the interest rate and 10-year Japanese Government Bond (JGB) yield target at -0.1% and 0%, respectively, after its October meeting. Japanese central bank decided to make YCC more flexible and changed the language around the 1.0% 10-year JGB yield cap. Following the meeting, the JPY weakened across the board and this triggered the warning from the Japanese policymakers. Early Wednesday, Japan’s top currency diplomat Masato Kanda came out with verbal intervention by saying that he is concerned about one-sided and sharp FX moves. Kanda added that he won’t rule out any steps to respond to disorderly FX moves.

On the Euro front, the European Central Bank (ECB) decided to leave the interest rate steady last week and the market anticipates the first-rate cut in the first half of 2024. On Tuesday, the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) eased to 2.9% YoY in October versus 4.3% prior, below the market consensus. The Core HICP came in at 4.2% from the previous reading of 4.5%.

Meanwhile, the quarterly and annual Eurozone Gross Domestic Product (GDP) for the third quarter (Q3) came in at -0.1% and 0.1%, respectively. Both figures were below the market expectation.

Later this week, market participants will keep an eye on the German Unemployment rate, Spain, and Italy’s HCOB Manufacturing PMI on Thursday. Traders will also take more cues from ECB’s Lane speech for fresh impetus. These events could give a clear direction to the EUR/JPY cross.

Technical Levels: Supports and Resistances

EURJPY currently trading at 159.96 at the time of writing. Pair opened at 160.37 and is trading with a change of -0.26 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 158.16, 50 SMA 157.97, 100 SMA @ 157.26 and 200 SMA @ 151.4.

The previous day high was 160.85 while the previous day low was 157.98. The daily 38.2% Fib levels comes at 159.75, expected to provide support. Similarly, the daily 61.8% fib level is at 159.07, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 158.62, 156.86, 155.75
• Pivot resistance is noted at 161.49, 162.6, 164.36

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