The EURJPY saw a strong rally this week after the news of a potential vaccine for coronavirus. The pair moved 225 pips higher to test the 125.00 level but has now pulled back towards 124.00. A move above the resistance level is still possible in the days ahead.
On this page, you will find news and analysis of the EURJPY pair. You will also find a live and advanced technical analysis chart for the EUR to JPY exchange rate.
What is the EURJPY?
EURJPY is the financial symbol of the exchange rate between the Euro and the Japanese yen. It is typically categorized under “crosses” and is considered as a minor currency pair, this is because it does not involve the US dollar. Regardless of this label, however, EURJPY is one of the most popularly traded currency pairs because both the euro and the yen are also held as currency reserves by economies all over the world; just like the US dollar.
Thus, you will notice that the spread or the cost in trading EURJPY is lower than other crosses. It is also a volatile, a feature that attracts forex traders as it allows them to trade more frequently.
What Factors Drive the EURJPY?
The price of EURJPY is largely dictated by announcements from the European Central Bank (ECB) and the Bank of Japan (BOJ). These are the monetary authorities that decide on the interest rates of the eurozone and Japan that consequently affect the euro and the yen directly.
Economic news from the eurozone like GDP, CPI, PMI reports, and employment data also tends to have a significant impact on the currency pair. On the other hand, economic reports from Japan do not spark much volatility on EURJPY. This is probably because Japan has been stuck in a decades-long deflation. On top of that, BOJ has one of the most expansionary policies among major central banks and Japanese policymakers are rarely able to catch market participants off-guard.
Lastly, in EURJPY investing, the trader must also be aware of sentiment analysis. The Japanese yen is regarded as a safe haven asset. This means that it tends to perform well on news that raises concerns among investors (such as political uncertainty, war, and signs of slower global growth). On the other hand, the Japanese yen tends to weaken in times of risk appetite or when investors are driven by their need to make higher returns on their investments. Understanding market sentiment will help the trader be better in forecasting the direction of EURJPY.
Live EURJPY Chart
EURJPY News and Analysis
EURJPY has paused from the recent downtrend to trade near resistance at 122.30. The pair had fallen for 8 out of 9 sessions as traders watched Europe go back into lockdown and the U.S. election bring safe haven risk.
EURJPY in a double combination according to the Elliott Waves Theory.
The EUR to JPY (EURJPY) has tumbled to the lowest level since July 17 as traders react to the messaging by the Bank of Japan and the European Central Bank (ECB). The pair is trading at 122.00, which is substantially below the October high of 125. The BOJ and ECB...
EURJPY heads to 120 and below after a double top formation.
The EURJPY was slightly higher after the Bank of Japan held interest rates as expected but cut their price forecasts for the current fiscal year. The forecasts increase the likelihood that they will maintain stimulus efforts. The BOJ also made no changes to virus funding programs, but new Prime Minister […]
EURJPY on its way to 120 as the ECB is expected to send a dovish message.
EURJPY got a boost today after weak Japanese inflation figures combined with stronger PMI data from Germany and the Eurozone. The pair is still trading under the 50-day moving average and the bears are in control for now. Japan’s core inflation rate was expected to show a drop of -0.4%...
October Services PMI data disappointed, but the EURJPY continues to trade with a bid tone. The cross pair found support recently at previous levels and now gets ready to bounce to the next level of resistance. Considering the US elections ahead of us, perhaps the wisest thing to do is […]
The EUR to JPY (EURJPY) price is down for the second consecutive day as traders remain concerned about the upcoming election in the United States. It is trading at the important psychological level of 124.00. The Japanese yen is often viewed as a safe-haven currency because of the large investments […]