- The shared coin makes gains of over 200 pips against the Japanese yen.
- Market players ignored the verbal “intervention” by Japanese Finance Minister Suzuki and BoJ Governor Kuroda.
- EUR/JPY Price Forecast: Break above 137.50 opened the door towards 141.05.
The EUR/JPY soars more than 200 pips on Tuesday, amid broad Japanese yen weakness and a risk-on mood in the market, keeping US stocks trading higher. At the time of writing, the EUR/JPY is trading at 138.95, a few pips below fresh seven-year highs.
The main news of the day is the Japanese yen, which weakened against most of the G8 currencies throughout the day. Minimal efforts at verbal intervention in the forex market by Japan’s Finance Minister Suzuki and BoJ Governor Kuroda were mostly ignored by market participants as EUR/JPY soared more than 200 pips.
On Tuesday, the 10-year Japanese Government Bond (JGB) hit a daily high of 0.276%, two basis points above the Yield Curve Control (YCC) imposed by the BoJ. However, it stands at 0.239% at the time of writing, just below the BoJ’s 0.25% target.
EUR/JPY Price Forecast: Technical Outlook
The EUR/JPY monthly chart shows the pair trending up. The Relative Strength Index (RSI), a momentum oscillator at 66.95, has plenty of room to spare if EUR/JPY heads higher.
Now that the EUR/JPY has left behind the February 2018 highs at 137.50, the next target for the EUR/JPY would be the June 2015 highs at 141.05. Once broken, the next resistance would be the December 2014 cycle high at 149.78.
However, if EUR/JPY fails to post a daily close above 137.50, it could open the door for further downside pressure. The first support would be 137.00, followed by the June 2021 cycle highs at 134.12, followed by a seven-year downtrend line turning resistance at 132.00.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
