- The EUR/JPY faces some sale pressure around 166.35 in the first bars of the European session on Thursday.
- The crossing maintains a constructive perspective above the 100 -day EMA, with a RSI Alcista indicator.
- The immediate resistance level is observed in 167.62; The initial support level is located in the area of ​​166.05-166.00.
The EUR/JPY crossing attracts some sellers about 166.35 during the first hours of European negotiation on Thursday. The Japanese Yen (JPY) gains strength against the euro (EUR) as tensions in the Middle East affect the feeling. The operators prepare for the data of the National Consumer Price Index (CPI) of May Japan and the minutes of the Monetary Policy Meeting of the Bank of Japan (BOJ), which will be published later on Friday.
Technically, the EUR/JPY maintains the bullish vibrates in the daily chart, with the price remaining above the exponential mobile (EMA) average of 100 days. The bullish impulse is backed by the 14 -day relative force (RSI) index, which is located above the midline about 62.00. This suggests a short -term bullish impulse.
The first bullish objective to be observed for the crossing is 167.62, the maximum of June 17. Extended gains could see a rebound towards the upper limit of the Bollinger band of 167.85. Further north, the following obstacle is found in the 170.00 psychological brand.
On the other hand, the initial support level for the EUR/JPY arises in the region of 166.05-166.00, representing the minimum of June 16 and the round figure. A rupture of this level could expose 164.22, the minimum of June 6. The key containment level to observe is 162.88, the 100 -day EMA.
EUR/JPY DAILY GRAPH
And in Japanese faqs
The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.
One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.
The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.
The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.
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.
