Hi guys please find below our analysis over EUR/JPY
1. Technical Momentum
EUR/JPY has recently broken above key resistance levels, suggesting bullish momentum. The pair is trending above its 50-day and 100-day moving averages, a signal of continued strength. RSI levels remain in bullish territory without being overbought, indicating room for further upside.
2. Diverging Monetary Policy
The European Central Bank (ECB) remains cautious on policy easing despite market expectations, while the Bank of Japan (BoJ) continues its ultra-loose stance with only minimal steps toward normalization. This policy divergence has been a significant driver for EUR/JPY strength and is likely to persist in the near term.
The BoJ’s slow exit from yield curve control and a historically dovish posture mean the yen remains weak relative to the euro, which benefits from steady economic resilience in the eurozone.
3. Improving Risk Sentiment
Global equity markets have been rebounding, and risk sentiment is turning positive. In such environments, the yen—traditionally a safe-haven currency—tends to weaken as investors move capital toward higher-yielding assets like the euro.
4. Economic Stability in the Eurozone
Recent Eurozone data, particularly out of Germany and France, has surprised to the upside. PMI figures and business confidence indices are beginning to recover, suggesting that the worst of the economic slowdown may be behind. This improves investor sentiment toward the euro.
Conclusion - Due to the positive Fundamental news coming from the Eurozone gives us a positive indication to showcase growth potential in this pair. From a technical overview, the analysis is supported by the MACD and RSI giving positive indication of a Ascending Channel formulating.
📌 Trade Plan
📈 Entry: 162.115
✅ Target 163.150
❌ SL: 161.400
1. Technical Momentum
EUR/JPY has recently broken above key resistance levels, suggesting bullish momentum. The pair is trending above its 50-day and 100-day moving averages, a signal of continued strength. RSI levels remain in bullish territory without being overbought, indicating room for further upside.
2. Diverging Monetary Policy
The European Central Bank (ECB) remains cautious on policy easing despite market expectations, while the Bank of Japan (BoJ) continues its ultra-loose stance with only minimal steps toward normalization. This policy divergence has been a significant driver for EUR/JPY strength and is likely to persist in the near term.
The BoJ’s slow exit from yield curve control and a historically dovish posture mean the yen remains weak relative to the euro, which benefits from steady economic resilience in the eurozone.
3. Improving Risk Sentiment
Global equity markets have been rebounding, and risk sentiment is turning positive. In such environments, the yen—traditionally a safe-haven currency—tends to weaken as investors move capital toward higher-yielding assets like the euro.
4. Economic Stability in the Eurozone
Recent Eurozone data, particularly out of Germany and France, has surprised to the upside. PMI figures and business confidence indices are beginning to recover, suggesting that the worst of the economic slowdown may be behind. This improves investor sentiment toward the euro.
Conclusion - Due to the positive Fundamental news coming from the Eurozone gives us a positive indication to showcase growth potential in this pair. From a technical overview, the analysis is supported by the MACD and RSI giving positive indication of a Ascending Channel formulating.
📌 Trade Plan
📈 Entry: 162.115
✅ Target 163.150
❌ SL: 161.400
Join my Telegram community for Forex trading insights, real-time news, educational content and friendly support. Let's grow and succeed together! -
t.me/Capital55DG
t.me/Capital55DG
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join my Telegram community for Forex trading insights, real-time news, educational content and friendly support. Let's grow and succeed together! -
t.me/Capital55DG
t.me/Capital55DG
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.