EURJPY Opens the Week on Choppy Trading 

The EURJPY currency pair opened the week with extreme volatility as the global banking sector crisis caused a stir across multiple asset classes. On Monday, the pair was down 0.57% as traders weighed their appetite for risk assets. However, some gains followed after a sharp low which sent the pair 1.62% lower on Monday. 

The U.S. CPI and Euro Area inflation and interest rate decision will decide the fate of the EURJPY currency pair. The Japanese Yen will likely be under pressure in light of the Bank of Japan’s decision to maintain rates, while a 50 basis point hike could potentially boost the Euro later in the week.  


The EURJPY uptrend stalled following a breakout below the dynamic support or upward-sloping trendline. Support and resistance were forged at the 141.380 and 144.259 levels, respectively.  

Following a rejection from the support level, bullish traders may be enticed to take the pair higher towards resistance at the 144.259 level. A breakout above the 50% Fibonacci Retracement level or the 143.273 level on high volume could validate a push upwards.  

Alternatively, bears will likely look to the 61.80% Fibonacci Retracement Golden Ration at the 143.711 level as a potential resistance level and entry point. If price approaches the level on declining volume, it could indicate the lack of bullish interest and a possible reversal in play. Bears will look to support at the 141.380 level for take-profit levels if they enter the market. 


Traders will be rubbing their hands over the interest rate decision later this week. A 50 basis point rate hike could create upside momentum for the EURJPY as capital flows towards the higher-yielding Euro at the Yen’s expense. The 144.259 level is, therefore, likely if a breakout above the 50% Fibonacci Retracement ensues. 

Sources: Reuters, TradingView