empty
10.09.2024 01:22 PM
EUR/JPY. Review and Analysis

This image is no longer relevant

This is the second consecutive day that the EUR/JPY pair is attempting to gain positive momentum, but the potential for growth remains limited.

This image is no longer relevant

The fundamental backdrop calls for caution before confirming that the pair has formed a short-term bottom and is ready for a significant recovery from the monthly low reached on Monday. According to data published on Monday, Japan's economy grew slightly slower than forecasted in the second quarter. Meanwhile, stable stock market performance is undermining the Japanese yen, offering some support for EUR/JPY's upward movement. However, diverging monetary policy expectations between the European Central Bank (ECB) and the Bank of Japan (BoJ) may deter traders from aggressive buying, thus limiting the pair's rise.

At the ECB's September meeting, scheduled for Thursday, the central bank is expected to cut interest rates again, following a drop in inflation in the Eurozone, which fell to its lowest level in three years in August. Meanwhile, markets are factoring in the possibility of another rate hike by the Bank of Japan by the end of the year. Therefore, it would be prudent to prepare for further growth in the pair while waiting for stronger global demand before confirming that EUR/JPY has reached a bottom.

Nevertheless, this fundamental backdrop favors the bears, suggesting that any subsequent upward movement could be viewed as a selling opportunity and may quickly lose steam for buyers.

From a technical standpoint, oscillators on the daily chart remain in negative territory. They have not yet entered oversold levels. Therefore, the fundamental outlook is supported by technical analysis, and the path of least resistance for the pair still points downward.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

EUR/JPY: What Are the Growth Prospects for the EUR/JPY Pair Going Forward?

The EUR/JPY pair has been drawing buyers for the fourth consecutive day, continuing its recovery from the 159.65 level, where last week's monthly low was recorded. The intraday positive trend

Irina Yanina 11:36 2025-01-22 UTC+2

U.S. Stock Investors Welcome Trump's Policy Implementation (Gold and #NDX Prices May Continue Rising)

Trading on U.S. stock markets concluded on a positive note on the first working day under the new president. U.S. stock indexes experienced broad support, driven by increased demand

Pati Gani 09:37 2025-01-22 UTC+2

Overview of the GBP/USD Pair on January 22: The Pound's Brief Respite Comes to an End

The GBP/USD currency pair mirrored the decline of the EUR/USD on Tuesday. As noted in previous analyses, the dollar's drop on Monday lacked a fundamental basis, and a correction

Paolo Greco 04:42 2025-01-22 UTC+2

Overview of the EUR/USD Pair on January 22: We Lived Through Boring Years Without Trump

The EUR/USD currency pair began to recover much of the ground it lost on Monday during Tuesday's session, as expected. On Monday, the U.S. dollar experienced a sharp decline

Paolo Greco 04:42 2025-01-22 UTC+2

Recent gas market developments

The gas market saw an uptick following the announcement by US President Donald Trump of a state of emergency in the US oil and gas sector, along with his approval

Miroslaw Bawulski 11:41 2025-01-21 UTC+2

USD/JPY: Analysis and Forecast

The current position of the Japanese yen reflects a complex balance between the positive sentiment in equity markets and expectations of interest rate hikes by the Bank of Japan

Irina Yanina 11:37 2025-01-21 UTC+2

USD/CAD: Donald Trump's Tariff Statements for Canada Shake the Market

The USD/CAD pair shows a correction after significant intraday growth. The Canadian dollar weakened under selling pressure after U.S. President Donald Trump announced plans to impose 25% tariffs on imports

Irina Yanina 11:29 2025-01-21 UTC+2

Overview of the GBP/USD Pair on January 21: The Pound Clings to a Straw

The GBP/USD currency pair experienced growth on Monday, coinciding with the start of the U.S. trading session. It's important to note that this growth did not stem from any specific

Paolo Greco 05:19 2025-01-21 UTC+2

Overview of the EUR/USD Pair on January 21: Trump's Inauguration Changes Nothing

The EUR/USD pair traded relatively calmly on Monday, at least during the first half of the day. However, with the opening of the U.S. session, volatility surged sharply. The subsequent

Paolo Greco 05:19 2025-01-21 UTC+2

EUR/USD: The Illusion Bubble – Dollar Weakens Amid Strengthened Risk Sentiment

Markets are optimistic ahead of Donald Trump's inauguration. Increased risk appetite has allowed EUR/USD buyers to recover from Friday's lows, with the pair now trading above the 1.0300 target

Irina Manzenko 23:40 2025-01-20 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.