EUR/JPY closes the week neutral above the 20-day SMA

EUR/JPY bulls defended the 20-day SMA, and the cross established itself above 156.00.
Factory orders from June unexpectedly rise by 7%.
BoJ’s hawkish signals and rising Japanese yields may limit the pair’s gains.

On Friday, the EUR/JPY traded above the 156.00 zone, boosted by a stronger Euro following industrial data from June but still, bullish momentum is limited. On the other hand, the Yen traded mixed against its rivals and its losses are cushioned by the Bank of Japan flashing hawkish signals.

Europe reported robust industrial data but soft Retail sales. Factory Orders in June jumped 7% while markets expected a 2% decline while sales in the Retail sectors declined by 0.3%, a decline higher than the 0.2% expected by the markets. In Friday’s session, the EUR traded with gains against most of its rivals, including the USD, AUD, JPY and GBP.

On the Yen’s side, is Japanese currency seems to be gaining traction on the back of Bank of Japan (BoJ) comments which stated that the benchmark 10-year Japanese Government Bonds (JGB) will widen from 0.5% to 1.0% which pushed Japanse yields to their highest levels since 2014. In that sense, markets may anticipate a potential pivot by the BoJ, but the Yen will remain vulnerable as long as the bank doesn’t take action.

EUR/JPY Levels to watch

As per the daily chart, the technical outlook for EUR/JPY is shifting towards neutral to bearish, with signs of bullish exhaustion becoming evident. The Relative Strength Index (RSI) displays a negative slope above its midline, while the Moving Average Convergence Divergence (MACD) exhibits fading green bars. Additionally, the pair is above the 20,100,200-day SMAs, suggesting that the outlook on the bigger picture favours the EUR.

Support levels: 155.75, 155.00, 154.00.
Resistance levels: 156.50, 157.00, 157.50.

EUR/JPY Daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/eur-jpy-closes-the-week-neutral-above-the-20-day-sma-202308042125