EUR/JPY drops after facing barricades around 137.00, ECB on track to hike rates


  • EUR/JPY is declining gradually after failing to sustain above the critical hurdle of 137.00.
  • The shared currency bulls are facing the heat as German Lindner has displayed a gloomy Eurozone outlook.
  • Despite the prolonged ultra-loose monetary policy, the BOJ is failing to inflation rate above 2%.

The EUR/JPY pair has slipped to near 136.85 after failing to sustain above the immediate hurdle of 137.00 in the Asian session. The cross plunged on Wednesday after the release of the German inflation data. Apart from that, Germany’s Finance Minister Christian Lindner displayed a gloomy picture of Germany and the Eurozone.

The Germany Harmonized Index of Consumer Prices (HICP) landed at 8.5%, in line with the estimates and the prior release. It is worth noting that US inflation dropped sharply on declining oil prices while German inflation remained steady, which indicates that the energy crisis has deepened in the Eurozone area.

Germany’s Lindner featured a gloomy outlook citing that the euro area’s powerhouse is fragile as the European gas crisis deepens by no means out of the Russia-Ukraine war. He added that the economy is on brink of recession, as companies expect significantly worse business activity in the coming months.

The already tedious job of the European Central Bank (ECB) is getting trickier as higher price pressures are accompanied by an energy crisis. Above all, the ECB is on track to elevate its interest rates by 50 basis points (bps). The ECB also hiked its interest rates by 25 bps in July.

On the Tokyo front, the Covid situation and lower inflation is getting more critical for the Bank of Japan (BOJ). The central bank is failing in keeping the inflation rate above 2% and pushing growth rates higher despite the continuation of an ultra-loose monetary policy. Apart from that, the ongoing cabinet re-shuffle is impacting the yen bulls.

EUR/JPY

Overview
Today last price 136.85
Today Daily Change -0.05
Today Daily Change % -0.04
Today daily open 136.9
 
Trends
Daily SMA20 138.17
Daily SMA50 139.85
Daily SMA100 138.07
Daily SMA200 133.88
 
Levels
Previous Daily High 138.4
Previous Daily Low 136.62
Previous Weekly High 137.76
Previous Weekly Low 133.4
Previous Monthly High 142.43
Previous Monthly Low 135.55
Daily Fibonacci 38.2% 137.3
Daily Fibonacci 61.8% 137.72
Daily Pivot Point S1 136.21
Daily Pivot Point S2 135.52
Daily Pivot Point S3 134.43
Daily Pivot Point R1 137.99
Daily Pivot Point R2 139.09
Daily Pivot Point R3 139.77

 

 

 

 

 

 

 

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