- The EUR/JPY rises, leveraged by the general fall of the JPY due to the cooling of the Japanese economy and inflation forecasts.
- Technical momentum suggests a test of the 164.00 level, with potential resistance at the November high.
- Initial support is at 163.00, with additional downside objectives including the Tenkan-Sen and Senkou Span A levels.
The EUR/JPY pair advances strongly and recovers the 163.00 area, as traders take advantage of the widespread weakness in the Japanese yen. The latest fundamental news from Japan is that its economy is cooling, while inflation is expected to be below the Bank of Japan's (BoJ) target of 2% in its core figures. At the time of writing, the pair is trading at 163.55, up 0.42%.
From a technical point of view, the EUR/JPY pair reached a new year-to-date high of 163.72, although the exchange rate retreated slightly amid fears that Japanese authorities could intervene in currency markets. Given the backdrop, the uptrend remains intact, and the pair could challenge the 164.00 figure in the short term. Breaking this level would expose the November 16 high at 164.31, followed by 165.00.
On the other hand, the first support for EUR/JPY would be the 163.00 point area. If sellers push the spot price below Monday's low at 162.56, a deeper pullback is expected beyond Tenkan-Sen at 162.31 as bears eye Senkou Span A at 161.61 ahead of Kijun-Sen at 160.90 .
EUR/JPY Price Action – Daily Chart
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.
