FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.72% higher on the day at 137.10 at around 10:30 GMT.

Previous Week's High/ Low: 137.96/ 134.94

Previous Session's High/ Low: 136.98/ 136.01

Fundamental Overview:

GfK's consumer confidence index for Europe's powerhouse fell to -36.5 from a downwardly revised -30.9 in July.

Confidence among German households plunged to a new record low in September. Households looked to cut back on other spending as  energy crisis spiraled.

The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.

The additional business cycle expectations index reflects the assessment of those questioned of the general economic situation in the next 12 months.

The Gfk Institute warned that the situation could become even worse in coming weeks and months if there is not sufficient fuel, especially gas, to heat homes, pushing bills even higher.

Technical Analysis:

- EUR/JPY spikes higher to retest 21-EMA resistance

- RSI is biased higher, but remains below the 50 mark

- MACD supports upside in the pair, Chikou span is also biased higher

- Price action is above the 200H MA, GMMA indicator has turned bullish on the intraday charts

Major Support and Resistance Levels:

Support - 136.75 (200H MA)

Resistance - 137.77 (55-EMA)

Summary: EUR/JPY pivotal at 21-EMA resistance. Decisive break above will see upside continuation.