- The EUR/JPY quote with moderate profits around 165.50 in the early hours of the European session on Wednesday.
- The crossing maintains a constructive perspective above the 100 -day EMA, with a RSI Alcista indicator.
- The immediate resistance level is observed in 165.65; The initial support level is located in 164.55.
The EUR/JPY crossing records modest profits about 165.50 during the European session on Tuesday. The Japanese yen (JPY) weakens in front of the euro (EUR) in the midst of an improved risk feeling, since the positive developments of commercial conversations between the US and China undermine the status of safe refuge of the JPY.
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. A greater increase seems favorable since the 14 -day relative force (RSI) index is above the midline about 63.50. This suggests a short -term bullish impulse.
The first upward target to observe for the crossing is found in 165.65, the upper limit of the Bollinger band. Further north, the following obstacle is located in 166.10, the maximum of November 6, 2024. The additional filter to observe is 166.60, the maximum of October 30, 2024.
On the other hand, the initial support level for the EUR/JPY arises in 164.55, the minimum of June 9. Any additional sale below the aforementioned level could see a fall at 162.90, the minimum of June 5. The key level of containment to observe is 162.40, 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.
