EUR/JPY corrects from critical resistance around 144.00 after ECB meeting

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  • 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

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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.

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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

EUR/JPY

Panorama
Last Price Today 143.88
Today’s Daily Change -0.01
Today’s Daily Change % -0.01
Today’s Daily Opening 143.89
Trends
20 Daily SMA 138.13
50 Daily SMA 138.37
100 Daily SMA 138.52
200 Daily SMA 134.72
levels
Previous Daily High 144.01
Previous Daily Minimum 141.37
Previous Maximum Weekly 140.75
Previous Weekly Minimum 137.04
Monthly Prior Maximum 139.73
Previous Monthly Minimum 133.4
Daily Fibonacci 38.2% 143
Daily Fibonacci 61.8% 142.38
Daily Pivot Point S1 142.17
Daily Pivot Point S2 140.46
Daily Pivot Point S3 139.54
Daily Pivot Point R1 144.81
Daily Pivot Point R2 145.73
Daily Pivot Point R3 147.45

Source: Fx Street

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