FxNews—According to their October meeting notes, the ECB is considering lowering interest rates, which could affect the euro’s value against other major currencies. The European Central Bank’s concern extends to ongoing high inflation from wages and slow job vacancies.
However, there is hope that the inflation rate will ease in Europe. Therefore, the ECB will wait to collect more data before cutting interest rates. This approach in the ECB’s policy demonstrates its data-focused and cautious monetary strategies.
EURJPY Technical Analysis – 14-November-2024
The European currency flipped below the 100-period simple moving average against the Japanese yen, showing bearish momentum. But the EUR/JPY downtick momentum paused when the price neared the 78.6% Fibonacci retracement level at approximately 162.9.
As of this writing, EUR/JPY trades sideways at about 162.4, testing the 100-SMA as resistance.
As for the technical indicators, the Awesome Oscillator shifted above the signal line, indicating that the bull market gained momentum. Similarly, the RSI 14 value exceeded the median line, recording 54 in the description.
Overall, the technical indicators suggest that while the prices are below the 100-SMA, the EUR/JPY pair can potentially rise and resume its previous bullish trajectory.
Watch EURJPY as It Nears Critical 165.0 Mark
The immediate resistance is at 165.0. From a technical perspective, the uptrend will likely resume if EUR/JPY buyers close and stabilize the price above 165.0. In this scenario, the next bullish target could be revisiting the October high at 166.7.
On the other hand, if bears (sellers) push the price below the immediate support, which rests at 163.6, a new bearish wave will likely emerge. If this scenario unfolds, the price could aim for the 78.6% Fibonacci retracement level (162.9), followed by the October 24 low, the 161.9 mark.
- Support: 163.6 / 162.9 / 161.9
- Resistance: 165.0 / 166.7