2) EURJPY

Technical Analysis (MA, RSI, STOCH, MACD, ADX)

• M30 - DOWN
• H1 - UP
• H4 - UP
• D1 - UP
• W1 - UP
• MN - UP

• Resistance: 133.65, 134.10, 134.50
• Support: 130.50, 129.30, 128.50

Yesterday the pair traded around the round level of 133.00 all day, but today it was broken, but according to the form of the movement, it can be noted that although the bulls are in the lead, they are already very weakened. Without additional strong fundamental background, the pair may go into consolidation and even start a downward correction. The market by the end of yesterday passed into the Greedy phase, Risk-ON. The value of the Fear-Greed indicator points to 62.

The Nikkei 225 is moving higher amid easing fears around China. The Chinese government announced that it will additionally participate in the regulation of the real estate market in order to prevent serious consequences of the crisis in this industry. The Chinese government also noted that it is looking for ways to limit the recent rise in energy prices. All this led to additional pressure for safe-haven currency , which is the Japanese Yen.

Yesterday neither Japan nor the EU published anything, but we want to note the dovish rhetoric of the ECB chief economist Philip Lane. F. Lane said yesterday that medium-term inflationary pressures are below the ECB's target. Making it clear that the ECB has more time before it is forced to start tightening monetary policy. Such rhetoric on the eve of the publication of the level of consumer inflation can be perceived as an attempt to calm the market, or it was an insider.

Today Japan has published a rather weak trade balance for September -622.8 billion yen against the forecast - 519.2 billion yen. This macroeconomic report, like many others, shows the general deplorable state of affairs in Japan's export economy. Also today at 11:44 am Japan Standard Time, the office of the Japanese Prime Minister reported that the Aso volcano erupted in Kumamoto Prefecture, the stream reached 1 km, no casualties or damage were reported.

Further, in a pair, we are waiting for two very important publications, today the EU will publish the level of consumer inflation in the Eurozone. According to the forecast, annual inflation will amount to 3.4%, as previously noted, any deviation from the forecast value could lead to volatility.

In terms of the prospects for movement, the upward direction is still considered as the main one. Here is the general phase of the market and the fundamental background. The fundamental assessment speaks of an exclusively upward movement, which is supported by macroeconomic data from the EU and Japan, and the EU's success in recovering from COVID is years ahead of Japan. Plus the position of BoJ, which was recognized as a currency manipulator.
In other words, the downward movement is supported only by risk aversion. In any case, the support level of 128.00 is still a reversal level.

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