FxWirePro: EUR/JPY consolidates above 144 handle, outlook bullish

Chart - Courtesy Trading View 

EUR/JPY was trading 0.10% lower on the day at 144.42 at around 05:41 GMT, consolidates previous session's gains.

The pair spiked higher on Monday to test 8-year high above 145 handle, before paring some gains to close at 144.56.

Technical bias remains bullish, but fears of Germany’s economic slowdown join chatters over the Bank of Japan’s (BOJ) intervention to weigh on prices.

Data released on Monday by Ifo Institute showed Germany's annual inflation expectation for 2023 were revised higher to 9.3% from June's forecast of 6%. 

For 2022, Ifo now sees Germany's economy growing by 1.6%, down from 2.5% in June, and forecasts 8.1% inflation (6.8% in June).

Momentum is bullish, volatility is high, MACD and ADX support gains. That said, overbought conditions raise scope for some pullback.

Major Support Levels: 

S1: 143.98 (5-DMA)

S2: 141.88 (200H MA)

Major Resistance Levels: 

R1: 145.32 (Upper BB)

R2: 149.78 (2014 high)

Summary: EUR/JPY poised for further upside. Overbought conditions may cause some pullbacks. Major weakness only below 200-DMA.