FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading rangebound on the day as the pair extends sideways above 21-EMA support

Previous Week's High/ Low: 139.20/ 134.77

Previous Session's High/ Low: 137.63/ 136.51

Fundamental Overview:

investors are focusing on the speech from 

European Central Bank (ECB)’s President Christine Lagarde speech which is due later on Tuesday is awaited by traders. 

Market participants will follow the speech keenly for insights into the monetary policy action. 

Higher inflationary pressures are demanding a rate hike to tame inflation, but fears of recession amid the Ukraine crisis could restrict the ECB from being hawkish.

Technical Analysis:

- EUR/JPY is grinding sideways for the 3rd consecutive session

- Price action holds above 21-EMA support, break below will drag the pair lower

- GMMA indicator shows major trend is bullish, while minor trend has turned neutral

- Upside attempts in the pair are capped below 200H MA

Major Support and Resistance Levels:

Support - 136.32 (21-EMA), Resistance - 137.35 (200H MA)

Summary: EUR/JPY trades directionless ahead. Lagarde's speech awaited for cues. Watch out for break below 21-EMA for more weakness. On the flipside, break above 200H MA will see further gains.