EUR/JPY Bullish
Fundamental data of Japan are still weak applying QQE for years. BOJ has to keep loose monetary policy, hoping everything may get better.
Even worse, birth rate of Japan shrinking year by year, aging society cannot be ignored when we do fundamental analyse. Under such circumstances, low unemployment rate is not as good as it shows. The main problem of Japan is inflation rate, which has been below 1% for about 6 months.
Euro area unemployment rate is declining, inflation rate reached 2%. Obviously, the economic in Euro-zone is getting better. ECB planning to reverse QE step by step, and after that, increasing interest rate will be discussed.
Because strong Euro will affect DXY, which may support JPY goes up, it is not suggested to trade USD/JPY in a long run.
Strong Euro and weak JPY may be a better pair to trade. It may be bullish for approximately 2 months.
Even worse, birth rate of Japan shrinking year by year, aging society cannot be ignored when we do fundamental analyse. Under such circumstances, low unemployment rate is not as good as it shows. The main problem of Japan is inflation rate, which has been below 1% for about 6 months.
Euro area unemployment rate is declining, inflation rate reached 2%. Obviously, the economic in Euro-zone is getting better. ECB planning to reverse QE step by step, and after that, increasing interest rate will be discussed.
Because strong Euro will affect DXY, which may support JPY goes up, it is not suggested to trade USD/JPY in a long run.
Strong Euro and weak JPY may be a better pair to trade. It may be bullish for approximately 2 months.
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