- The yen advances firmly throughout the market in the last day of the year.
- EUR/JPY loses more than 200 pips in two days, returns to the 200-day moving average.
The and in it is rising steadily across the market which has led EUR/JPY to fall to 140.35, the lowest in a week. The cross erased all weekly gains and fell to the 200-day moving average.
The short-term bias remains bearish. Next key support looms at 140.00, which if it gives way could accelerate declines exposing the December low at 138.80.
Negative month, positive year
The EUR/JPY is on track to end the year up 7.5%, driven by weak yen. The key role in this rise has been the attitude of the bank of japan (BoJ) to maintain its ultra-expansionary monetary policy.
This may change in 2023, especially after the BoJ expanded the bond’s operating range to 10 years at its December meeting. A minor change but one that can anticipate a change in direction. Since then, the yen has become one of the strong ones, which served to cut losses for the year.
In turn, on Thursday the BoJ surprised with the announcement of two bond purchases in the same day. This led to speculation of more easing in the yield control curve policy, giving the yen more strength.
The Japanese currency is advancing at this time even despite the rise in the yields of Treasury bonds and also European ones.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
