- The EUR/JPY extends the fall to about 162.35 in the first bars of the European session on Thursday, lowering 0.25% in the day.
- The positive perspective of the tar prevails above the 100 -day key em.
- The immediate resistance level arises in 163.31; The key support level to monitor is 162.00.
The EUR/JPY crossing attracts some sellers around 162.35 during the first bars of the European session on Thursday. The Japanese Yen (JPY) weakens in front of the euro (EUR) in the midst of the growing speculation that the Bank of Japan (Boj) will raise interest rates this year again.
Technically, the constructive perspective of the EUR/JPY is maintained since the crossing is well supported above the exponential mobile average (EMA) of 100 days in the daily chart. However, greater consolidation or temporary sale cannot be ruled out, since the 14 -day relative force (RSI) index is below the midline about 47.25, showing a low -end impulse in the short term.
The first upward objective for the EUR/JPY arises in 163.31, the maximum of May 21. Extended profits could see a rebound to 164.46, the maximum of May 1. The additional filter to monitor is 164.85, the upper limit of the Bollinger band.
On the other hand, the crucial support level for the crossing is found in 162.00, the EMA of 100 days and the psychological level. A sustained trade below the mentioned level could see a fall at 161.40, the lower limit of the Bollinger band. The next bearish objective to be monitored is 160.00, the round figure and the minimum of April 8.
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.
EUR/JPY DAILY GRAPH
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.
