2) EURJPY

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

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

• Resistance: 132.40, 133.00, 133.50
• Support: 130.70, 129.50, 129.00

The currency pair yesterday, after falling during the Asian session, just hung at the support level of 130.70. Japan's Nikkei 225 continued its decline, but the overall market phase still kept the currency pair from falling deeper. The market phase is still Risk-ON, with the Fear-Greed indicator pointing at 86.

Yesterday the macroeconomic calendar was empty. Important news was not published either for the EU or Japan.

The Japanese stock market continues to experience strong pressure, which is based on fears around the Chinese real estate market.
The end of the 30-day grace period expires today, November 10, 2021, and China Evergrande Group is due to issue coupon payments totaling $ 148.1 million.
Another major Chinese real estate developer, Yango Group, is delaying bond payments, citing liquidity concerns.
The People's Bank of China continues to operate on the open market and injects record amounts of funds into the system through reverse repo transactions in order to stabilize the situation. Yesterday, the Chinese government held a meeting with developers, discussed market risks and taxes, as well as ways out of the current crisis.

On the other hand, dovish comments from ECB officials continue to be published every day. The ECB should avoid tough long-term political promises in case inflation in the euro area suddenly exceeds expectations, said Governing Council member Klaas Knot. Klaas Knot said that it is not clear yet whether the ECB will be required to increase the pace and volume of bond purchases under the QE program once the PEPP program is completed. He also said the ECB will need to assess whether it is commensurate with maintaining a high level of flexibility in bond purchases after the end of the crisis phase.
Knot echoed what other ECB officials have said recently that the conditions for a rate hike are unlikely to be met next year.

A technical assessment of the currency pair's movement on higher timeframes suggests that the currency pair has either already completed the downward correction from the September upward movement at 131.00 = 50% or will complete at 130.50 = 61.8%.

In terms of the prospects for the movement, as previously mentioned, the disappointment with the dovish position of the ECB will soon pass. And the weakness of the Japanese Yen due to the policy of the Bank of Japan is currently one of the main drivers for the upward movement. 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, and a correction in the Japanese stock market against the backdrop of the crisis in China. However, in case of a breakdown of the 130.50 support level, the bulls may lose initiative.

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