EURJPY Analysis: Highest Since Fall 2008

FXOpen

Yen Weakening Drivers:
→ rising prices for energy resources. After all, Japan is a major importer.
→ The inflation index CGPI (corporate goods price index) indicates a slowdown in inflation. Therefore, this raises the likelihood that the Bank of Japan will maintain an ultra-loose monetary policy.

The growth of the euro against the yen is facilitated by the fact that the ECB is pursuing a tough policy. Market participants expect that another rate increase could be made in autumn.

The EUR/JPY chart shows that the rate is in an uptrend. The market recovered quickly from the sharp decline on July 27, a testament to the strength of demand. Another piece of evidence is the amount of B→C retracement after A→B rises. It was only about 30% of the momentum.

Support levels:
→ 157.85. After the breakout by the bulls, the previous resistance may provide support, as was the case with the 151.55 level, which worked as a resistance in May, but provided support at the end of June;
→ median channel line.

Resistance Levels:
→ upper border of the channel;
→ the psychological level of 160 yen per euro.

Today (at 15:30 GMT+3) inflation news in the US is expected, which can shake financial markets a lot.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: EUR/USD, GBP/USD, and USD/JPY Market Analysis: AUD/USD and NZD/USD Could Start Fresh Increase Market Analysis: American Currency Rises Sharply after Fed Meeting Will Stagflation Persist in the UK? EUR/GBP Volatility May Be an Indicator Market Analysis: Commodity Currencies Find Short-term Bottom

Latest articles

Forex Analysis

Market Analysis: EUR/USD, GBP/USD, and USD/JPY

At the US Federal Reserve meeting, officials expectedly kept the interest rate at 5.25–5.50%. According to the head of the regulator, Jerome Powell, tightening monetary policy is still possible if indicators begin to show negative dynamics again.

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Could Start Fresh Increase

AUD/USD declined below 0.6430 before it found support. NZD/USD is now recovering and eyeing an upside break above the 0.5950 resistance zone. Important Takeaways for AUD/USD and NZD/USD Analysis TodayThe Aussie Dollar started a

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.