- The euro is under pressure after the ECB meeting and Lagarde’s press conference.
- The Japanese yen regains some ground after days of significant losses.
- EUR/JPY is once again unable to hold above 144.00.
The rise of the crossing EUR/JPY reached a strong resistance zone around 144.25 and pulled back after the European Central Bank meeting. It recently reached a new daily low of 143.15. The decline comes after a rise of 500 points in three days.
The euro weakens after the ECB
On Thursday, the European Central Bank raised interest rates by 75 basis points, as expected, to curb inflation and despite concerns about economic growth in the Eurozone. The central bank said it will raise rates further. Lagarde said the next hike is not necessarily 75 basis points.
The euro weakened in general after the press conference, favoring the EUR/JPY correction. The decline also came amid a recovery in the yen. USD/JPY fell back from multi-decade highs to 143.50. Rising US yields continue to keep the yen under pressure.
Back to the 144.20/30 area
As was the case several times in June, the 144.20/30 area capped EUR/JPY’s gains. The cross reached Thursday at 144.32, the highest intraday level since January 2015, but quickly pulled back.
The euro was unable to hold above 144.00 and lost momentum. The cross needs a consolidation above that area to open the doors to more gains in the medium term. On the other hand, below 143.00, the next support is seen at the 142.40 area (July highs).
Technical levels
Source: Fx Street
