EUR/JPY extends its downside below 154.50 ahead of ECB rate decision

EUR/JPY drops to the lowest level since October, near 154.35.
The European Central Bank (ECB) is expected to hold the rate steady at 4.0% on Thursday.
The Bank of Japan's (BoJ) quarterly Tankan survey revealed that business confidence in Japan’s large manufacturers improved for the third straight quarter.
Market players will closely watch the ECB interest rate decision on Thursday.

Lallalit Srijandorn FXStreet

The EUR/JPY cross loses traction for the second consecutive day during the early European session on Thursday. Investors await the European Central Bank (ECB) monetary policy decision on Thursday, which is likely to hold the rate steady. The cross currently trades around 154.35, losing 0.77% on the day.

The ECB is anticipated to maintain its Deposit Facility rate unchanged at 4.0% at its December meeting on Thursday. Traders will monitor the key policy adjustments at the end of the meeting and the development of ending reinvestments in its PEPP program. Additionally, money markets are pricing in nearly 150 basis points (bps) of rate cuts next year.

On Wednesday, the Bank of Japan's (BoJ) quarterly Tankan survey revealed that business confidence at large manufacturers in Japan improved for the third straight quarter. The report might convince the Bank of Japan (BoJ) to exit its negative rate policy sooner than expected, which lifts the Japanese Yen (JPY) against the Euro (EUR).

The headline Japanese Large Manufacturers' Sentiment Index came in better than market expectations, climbing to 12.0 from the previous reading of 9.0.

On Friday, the preliminary Japanese Jibun Bank PMI report will be released. The German and Eurozone HCOB PMI reports will be in the spotlight and could trigger volatility in the market. Traders will take cues from these figures and find a trading opportunity around the EUR/JPY cross.

EUR/JPY

Overview
Today last price	154.32
Today Daily Change	-1.24
Today Daily Change %	-0.80
Today daily open	155.56

Trends
Daily SMA20	160.33
Daily SMA50	159.79
Daily SMA100	158.73
Daily SMA200	154.18

Levels
Previous Daily High	157.48
Previous Daily Low	155.39
Previous Weekly High	159.84
Previous Weekly Low	153.17
Previous Monthly High	164.31
Previous Monthly Low	159.07
Daily Fibonacci 38.2%	156.19
Daily Fibonacci 61.8%	156.68
Daily Pivot Point S1	154.8
Daily Pivot Point S2	154.05
Daily Pivot Point S3	152.71
Daily Pivot Point R1	156.9
Daily Pivot Point R2	158.24
Daily Pivot Point R3	158.99

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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