EURJPY Pushes to Cycle Highs Again
28 June 2022
The EURJPY cross continued to advance, rising another 0.5% Tuesday and trying to breach to new cycle highs above 144 as both USDJPY and EURUSD traded higher, supporting the EURJPY cross.
Lagerde sticks to script
The opening remarks on Day 2 of the ECB Forum on Central Banking in Sintra, Portugal, were made earlier today by Christine Lagarde, head of the European Central Bank (ECB).
She stated that the ECB will raise interest rates by 25 basis points in July, with an option to hike by more in September. The central bank will have enough knowledge to act quickly if the forecast for inflation does not change.
A "gradual but persistent" path of additional rate hikes beyond September will be prudent.
On the other hand, the domestic economy is experiencing an increase in and spread of inflationary pressures. Therefore, supply shocks that affect the economy may last longer.
If the euro jumps above 144, larger stop-losses could be hit, likely sending the cross quickly toward the 145 level, the highest since December 2014. The four-hour chart looks like an advancing triangle pattern, with a potential of some 6 figures, thus, likely targeting the 150 threshold in the medium-term.
Alternatively, it looks like the support could be near 142, with the medium-term demand zone in the 138 - 140 area. So far, the immediate outlook seems bullish.