2) EURJPY

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

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

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

Yesterday the currency pair shot up to the resistance area of ​​132.40, but today, within the Asian session, the currency pair won back the entire growth of yesterday. Growth yesterday was associated solely with a serious impulse in demand for risky assets. As a result, the value of the Fear-Greed indicator is 82. At the end of yesterday, not without the help of the statement of Fed Chairman D. Powell, the market has strengthened in the phase of extreme greed.

In terms of fears, no further information has yet been received. All attention was focused on the Fed's policy decision, which exactly matched forecasts and expectations, which led to an additional surge in demand in the stock market. This is where the principle that can be represented by this 'joke' began to work: the best way to deal with the rise in diaper prices is to buy P&G stock.

Japan was on a weekend yesterday. The EU published the unemployment rate for September, which, as expected, was 7.4%. Accordingly, without causing any market reaction. Later, ECB President Christine Lagarde said in a TV interview that 2022 is off schedule in terms of raising interest rates. The head of the Bank of France and the representative of the ECB F. Villeroy said the same, adding that inflation will fall below 2% next year, and the ECB does not need to raise rates next year. Of course, this dovish position of the ECB's top management will surely win back on the market.

Japan went to work today and released the final October PMI for services in Japan, which was 50.7, which for the first time in 21 months exceeded the threshold of 50. Recall that anything above 50 indicates an improvement in the business climate in the country. Quite a positive publication, since today is the first working day of Japanese traders, they will most likely win back everything that they missed yesterday.

In terms of the prospects for the movement, as previously wrote that the disappointment with the dove position of K. Lagarde will soon pass, and as soon as this began to happen, Lagarde added again. In any case, globally, the upward direction is more promising than downward. All downward movement while the market phase of the Risk-ON market is nothing more than a technical correction. Plus, don't forget about BoJ's stance on exchange rate control, the Bank of Japan has been recognized as a currency manipulator.
However, so far the bulls do not have enough fundamental fuel to resume the upward movement.

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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