EURJPY is a pair that has seen some movements today. The pair has dipped below the 200-hour moving average during the Asian trading as yen gained on media reports saying that Japanese government may revive BoJ's mandate and inflation target in early-2023. However, the pair slowly recovered since and got a lift at the beginning of the European trading after ECB member De Guindos said that European central bank will stick to 50 basis point rate increases and that he does not know when rate hikes will stop, reinforcing hawkish message sent by President Lagarde at a post-meeting press conference. German IFO indices at 9:00 am GMT also supported EUR as they came in above expectations. Current conditions index jumped from 93.1 to 94.4 (exp. 93.5) while expectations index moved from 80.0 to 83.2 (exp. 82.0).
Taking a look at the pair at H1 interval, we can see that the pair recovered from a dip below the 200-hour moving average (purple line) and climbed back above a price zone marked with 38.2% retracement.. While this is a positive from a technical point of view, it should be noted that the pair has made the largest correction to date in the current upward impulse. This means that according to the Overbalance methodology, short-term trend has reversed to bearish. The nearest major resistance zone to watch can be found ranging above 145.00 mark.
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Source: xStation5
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