- The EUR/JPY bounces about 172.60 while Japanese resumes his way down.
- The ruling coalition party of Japan lost control in the upper house.
- The ECB is expected to maintain stable interest rates at the monetary policy meeting on Thursday.
The EUR/JPY pair recovers most of its initial losses and rises to about 172.60 during the afternoon of the Asian session on Monday, after a weak opening around 172.00 earlier in the day. The cross attracts offers while the Japanese Yen (JPY) struggles to maintain the initial profits due to political uncertainty in Japan.
On Sunday, the ruling coalition party of Japan, led by Prime Minister Shigeru Ishiba, lost control in the Upper House, which generated fears of a political change in the economy. A scenario that often weighs on the national currency.
Political uncertainty in Japan has arrived at a time when the nation is struggling to end a commercial agreement with the USA (USA) Before the deadline of August 1.
Meanwhile, the euro (EUR) is expected to operate cautiously since The European Central Bank (ECB) You are scheduled to announce monetary policy on Thursday. According to Erste Group analysts, the ECB is expected to maintain its stable key interest rates.
In the global field, commercial tensions between the European Union (EU) and the US have increased, since the latter has demanded more concessions before finalizing an agreement. According to a Financial Times (FT) report, Washington is considering at least one minimum tariff from 15% to 20% in an agreement with the EUROZONA.
The EUR/JPY strives to extend its winning streak for the ninth week. The 10 -week exponential (EMA) mobile average with ascending slope about 169.10 suggests that the general trend is upward.
The 14 -day relative force (RSI) index is about 70.00, suggesting that the bullish impulse is maintained.
From now on, the torque could experience more increases towards the maximum of July 2024 of 175.43 if it breaks above the maximum last week of 173.25.
On the other hand, a downward movement below the minimum of July 16, 171.84 could result in a greater decrease towards the minimum of July 11, 170.81, followed by the round level support of 170.00.
EUR/JPY weekly graphics
Economic indicator
ECB rate in the ease of deposits
One of the three key interest rates of the European Central Bank (ECB)the rate of ease of deposit, is the rate at which banks gain interest when they deposit funds in the ECB. It is announced by the European Central Bank in each of its eight scheduled annual meetings.
Read more.
Next publication:
Jul 24, 2025 12:15
Frequency:
Irregular
Dear:
2%
Previous:
2%
Fountain:
European Central Bank
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.
