EURJPY H1

The EUR/JPY cross extended its upside for the third consecutive day in the Asian session on Monday. The cross currently trades around 158.35, gaining 0.17% on the day.

At the Jackson Hole Symposium, European Central Bank (ECB) President Christine Lagarde stated that the battle against inflation is not yet won. She emphasized the importance of central banks providing an economic nominal anchor and ensuring price stability while setting interest rates at restrictive levels for as long as it takes to achieve inflation to the ECB's medium-term target of 2%.

Furthermore, ECB Governing Council member Martins Kazaks said that it may be too early to pause interest rate hikes now as a premature halt in the fight against inflation could exert more pressure on the economy in the future. Markets anticipate a 50% possibility of an additional rate hike in the ECB September meeting following the ECB’s policymakers' comments. That said, the divergence in monetary between the ECB and the Bank of Japan (BoJ) lifts the Euro against its rivals.

EURJPY in H1 chart RSI on the overbought level and There is very strong resistance around 158.40, so we accept some correction in this pair around 152.59.