Chart - Courtesy Trading View
Spot Analysis:
EUR/JPY was trading 0.35% higher on the day at 138.96 at around 11:20 GMT.
Previous Week's High/ Low: 142.85/ 138.01
Previous Session's High/ Low: 140.40/ 138.01
Fundamental Overview:
Japanese markets have witnessed a massive sell-off as investors are awaiting the announcement of the Bank of Japan (BOJ) monetary policy on Wednesday.
Investors are waiting nervously to see if the BOJ will defend its super-sized stimulus policy at a pivotal meeting on Wednesday, which could drive big moves in the yen crosses.
On the data front, German Wholesale Prices contracted 1.6% MoM in December and rose 12.8% over the last twelve months.
Further, Eurogroup meeting will be in the limelight throughout the session. Major updates could influence price action.
Technical Analysis:
- Price action has slipped below 200-DMA
- GMMA indicator shows major and minor trend are bearish
- Recovery was capped at daily cloud
- Momentum is bearish, Stochs and RSI are biased lower
Major Support and Resistance Levels:
Support - 138.53 (55-week EMA), Resistance - 140.68 (200-DMA)
Summary: EUR/JPY snaps 2-day downside, but recovery lacks traction. Scope for further downside.
