- The EUR/JPY continues to climb, tipping into a 15-year high.
- The Yen is fumbling across the board for Wednesday.
- Investors likely to begin watching for signs of intervention from the BoJ.
The EUR/JPY is edging into its highest bids in over 15 years, trading north of 161.50 and looking for more. The Japanese Yen (JPY) has struggled recently, being all but abandoned by a hyper-dovish Bank of Japan that remains entirely focused on propping up long-run growth expectations for the Japanese economy even as the Yen continues to tumble to record lows.
The BoJ remains firmly dedicated to their hyper-easy monetary policy framework, leaving the Yen little place else to go but to drain down the charts, and the Eur (EUR) is seeing a upshot breakaway.
With the JPY trading so poorly against other assets, it's only a matter of time before someone at the BoJ decides enough is enough and begins to intervene in currency markets in a bid to protect their domestic currency from further selling.
The early Thursday Asia market session sees trade balance figures for Japan, with the headline non-seasonally-adjusted Current Account for September expected to rise from JPY 2.2 trillion to 3 trillion.
EUR/JPY Technical Outlook
The Euro is up over 2.5% against the Yen from last week's swing low into 157.70, and with little technical patterns on the high end to cap bullish momentum, the pair could see an easy break into further record territory.
The EUR/JPY caught a clean bounce from the 50-day Simple Moving Average (SMA) last week, and long-term chart support sits at the 152.00 handle with the 200-day SMA.
A rising trendline from late July's swing low into 152.00 is also pricing in a technical floor from the 156.00 region.
EUR/JPY Daily Chart
EUR/JPY Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0400 in quiet trading
EUR/USD trades in positive territory above 1.0400 in the American session on Friday. The absence of fundamental drivers and thin trading conditions on the holiday-shortened week make it difficult for the pair to gather directional momentum.
GBP/USD recovers above 1.2550 following earlier decline
GBP/USD regains its traction and trades above 1.2550 after declining toward 1.2500 earlier in the day. Nevertheless, the cautious market mood limits the pair's upside as trading volumes remain low following the Christmas break.
Gold declines below $2,620, erases weekly gains
Gold edges lower in the second half of the day and trades below $2,620, looking to end the week marginally lower. Although the cautious market mood helps XAU/USD hold its ground, growing expectations for a less-dovish Fed policy outlook caps the pair's upside.
Bitcoin misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.