- EUR/JPY ignores weaker-than-expected ZEW data from the Eurozone and Germany, buoyed by USD/JPY strength.
- Positive US Retail Sales figures drive the USD/JPY higher, despite no clear indications of the Fed’s rate cut size ahead of the FOMC meeting.
- ECB Member Simkus dismisses a rate cut in October, while analysts speculate the BoJ could raise rates to 0.50% by year’s end.
The EUR/JPY trades in the green, up by 0.48%, shrugging off worse-than-expected ZEW data from the Eurozone (EU) and Germany. The recovery of the USD/JPY pair boosted the pair. At the time of writing, the cross-pair trades at 157.28 after touching a low of 156.05.
EUR/JPY climbs to 157.28 as strong US Retail Sales data weighs on Japanese Yen
Data from the United States (US) underpinned the USD/JPY after Retail Sales exceeded estimates of -0.2% contraction, expanded by 0.1% MoM in August. Although the data is positive, failed to provide hints on the size of the Federal Reserve rate cut on Wednesday.
Markets reacted positively to the announcement as Wall Street extended its gains, and the Greenback recovered ahead of the Federal Open Market Committee (FOMC) decision.
In addition, the EU ZEW Survey of Expectations dipped to an eleven-month low, from 17.9 to 9.3 in September, marking the third consecutive month of deterioration amid ongoing uncertainty about the economic outlook and monetary policy direction.
In the meantime, European Central Bank (ECB) Member Gediminas Simkus said the economy is developing as foreseen and disregarded a rate cut in October.
On the Japanese Yen front, the Bank of Japan (BoJ) will hold its latest monetary policy meeting. The consensus suggests the BoJ will stay put, yet analysts at Standard Chartered suggest that rates could reach 0.50% by year’s end.
EUR/JPY Price Forecast: Technical outlook
Given the fundamental backdrop, the FOMC’s meeting could weigh on both countries. If the Fed’s decision triggers a risk-off environment, look for further downside on the EUR/JPY pair.
However, as of writing, the cross has cleared the Tenkan-Sen at 157.46. It aims to challenge the Senkou Spa A at 158.49, but first, traders should reclaim 158.00. If those levels are cleared, the next stop would be the Kijun-Sen at 159.51.
On further weakness, the EUR/JPY could retest the latest trough at 155.14, the September 16 daily low.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.15% | 0.74% | 0.01% | -0.18% | 0.13% | 0.23% | |
| EUR | -0.08% | 0.07% | 0.63% | -0.10% | -0.28% | 0.05% | 0.16% | |
| GBP | -0.15% | -0.07% | 0.58% | -0.13% | -0.35% | -0.01% | 0.06% | |
| JPY | -0.74% | -0.63% | -0.58% | -0.72% | -0.91% | -0.60% | -0.52% | |
| CAD | -0.01% | 0.10% | 0.13% | 0.72% | -0.19% | 0.13% | 0.20% | |
| AUD | 0.18% | 0.28% | 0.35% | 0.91% | 0.19% | 0.31% | 0.39% | |
| NZD | -0.13% | -0.05% | 0.01% | 0.60% | -0.13% | -0.31% | 0.07% | |
| CHF | -0.23% | -0.16% | -0.06% | 0.52% | -0.20% | -0.39% | -0.07% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
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
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD: No respite to the sell-off ahead of US CPI
The rally in the Greenback remained well and sound for yet another session, weighing on the risk-linked assets and sending EUR/USD to new 2024 lows in the vicinity of 1.0590 prior to key US data releases.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT
Solana price retraced 7% from $225 to $205 on Tuesday, halting a seven-day winning streak that saw SOL become the third-largest cryptocurrency by market capitalization.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
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.