2) EURJPY

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

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

• Resistance: 132.40, 133.00, 133.50
• Support: 131.30, 130.70, 129.50

The currency pair continued to be very active and multidirectional yesterday, intraday trading was carried out in a wide range of 95 pips. However, at the end of the day, the currency pair remained at the same levels as the days before. We get 8 full trading days when the currency pair dangles in place after the test of the local high of 133.50. As of the end of the day, the market still remains in the zone of extreme greed, the value of the Fear-Greed indicator points to 78.

The actions of the People's Bank of China are having a positive effect on stock markets. As a reminder, the NBK continues to inject increased volumes of liquidity into the banking system. An additional RMB 50 billion injected through reverse repo transactions was reported today.
However, not without fears, COVID remains in the spotlight in China. China's National Health Commission said the latest COVID outbreak was the most common since the Wuhan outbreak. The highly contagious variant of the delta is spreading throughout the country, despite the increasingly aggressive measures that local authorities are taking to try to prevent it. Officials in China say they are committed to maintaining the so-called Covid Zero approach.

From the news, yesterday the EU released mixed macro data that put pressure on the EUR slightly. Markit released its final manufacturing PMI for October. Manufacturing PMI (PMI) in Germany was worse than the forecast and the previous value and amounted to 57.8. And the general index of business activity in the EU manufacturing sector for the same month was worse than forecast and amounted to 58.3. Supply bottlenecks remained the main bottleneck for German and EU manufacturers at the start of the fourth quarter, according to the official report.
No news was published in Japan. The only thing we want to draw your attention to is the speech of the Minister of Finance of Japan, Shunichi Suzuki, who said after a meeting with the Governor of the Bank of Japan Haruhiko Kuroda that BoJ retains complete independence in deciding on monetary policy. Since Suzuki said that the foreign exchange market and exchange rates were not discussed at this meeting, BoJ will do everything possible to keep the market stable and reach the inflation target. In other words, BoJ will continue its super-soft monetary policy further, and they will print as much money as necessary.

Today Japan is resting, we are waiting for a rather important publication in the EU - the unemployment rate for October. However, all the market's attention today will be focused on the US and the FOMC meeting.

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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