2) EURJPY

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

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

• Resistance: 133.00, 133.50, 134.10
• Support: 131.80, 131.30, 130.70

The currency pair was trading yesterday mainly with an upward potential, all this against the background of increased demand for risky assets. At the end of yesterday, the market went into a phase of extreme greed, the value of the Fear-Greed indicator at 77 this year's maximum.

However, today the mood seems to have changed a lot, in the Asian session we are witnessing a moderate downward pullback. This downward movement is most likely associated with a request for protection, it is unlikely to develop into a full-fledged downward correction, but anything is possible. We will remind today the Chinese government appealed to the population, urging to stock up on food in case of the introduction of new lockdowns.
Also earlier, the Chinese government began to urge restaurants and catering companies to use food rationally.
The 2025 plan follows President Xi Jinping's call to reduce food waste and improve the country's food security. Efforts are being made as Chinese agricultural purchases continue to climb year over year to record levels. China is also facing sharp increases in the prices of some foodstuffs, which could be a more serious inflation problem.
In other words, a not yet very clear situation with a potential food crisis has been added to the already familiar problem with COVID.

From the news, neither the EU nor Japan published anything yesterday. Japan today released the minutes of the Bank of Japan meeting held last week. As usual, Japan's economy will improve as the impact of the pandemic eases, and BoJ continues to closely monitor the impact of the coronavirus. The negative impact of semiconductor shortages and supply chain disruptions on major manufacturers in Japan was also noted. Also today it became known that the ruling coalition retained the majority in the lower house of the Japanese parliament, in other words, the elections were held as expected. The LDP took the majority.

No important news is expected in Japan further this week. However, do not forget that Japan is resting tomorrow. In the EU we are waiting for one important publication tomorrow, when the unemployment rate for September will be published.

In terms of the prospects for the movement, we believe that the disappointment with the dovish position of K. Lagarde will soon pass and the market phase and the general fundamental background will again remain on the agenda. On which the currency pair can be marked exclusively upward movement. Plus, don't forget about BoJ's stance on exchange rate controls, the Bank of Japan has been recognized as a currency manipulator.

All downward movement is perceived as nothing more than a correction. However, in case of a breakdown of the 130.50 support level, the bulls may lose initiative.

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