Euro Ascendancy: Unveiling EURJPY's Resilience Post-Tokyo
EURJPY underwent a correction at the onset of the Tokyo trading session following the release of Japan's National Core CPI data on November 24, 2023. Despite the data indicating a slight increase from the projected 2.8% to 2.9%, it's crucial to note that this led to only a minor correction in this currency pair. This correction aligns with market movements typically associated with economic data announcements.
Technical Analysis:
The currency pair currently positions itself near a robust demand zone identified at the 163.720 level. This zone has demonstrated significant resilience in previous periods, creating opportunities for potential further strengthening. In the realm of technical analysis, the target for strengthening is set at the 167.660 level, reflecting the pivot point since August 2008.
Supporting Factors:
Euro Strength: Despite a minor correction, the Euro maintains its resilience. Fundamental factors, such as the conservative monetary policy of the ECB, provide robust support for the Euro, particularly after touching a strong demand zone.
Japanese Inflation:
Despite a modest increase in Japan's CPI by 0.1% since October 2023, this can be viewed as a relatively insignificant impact that merely resulted in a temporary correction, presenting opportunities for short-term strengthening.
Historical Price Movement:
Historical price movement analysis indicates that EURJPY has the potential to reach its highest level since August 2008. This is attributed to the high-interest-rate policy implemented by the ECB in recent times, acting as a catalyst for this strengthening. Notably, the Euro has shown a robust increase against the JPY since October 30, 2023, with a notable surge of 3.44% as of the time of writing.
Risks and Considerations:
It's imperative to remember that trading always involves risks, and market conditions can change rapidly. Risks associated with changes in ECB policies, Japanese economic data, or geopolitical factors should be vigilantly monitored.
Disclaimer:
This analysis is for informational purposes only and does not constitute investment advice. Trading decisions should be based on in-depth analysis and an understanding of associated risks. Trading always carries risks, and past performance does not guarantee future results.
Technical Analysis:
The currency pair currently positions itself near a robust demand zone identified at the 163.720 level. This zone has demonstrated significant resilience in previous periods, creating opportunities for potential further strengthening. In the realm of technical analysis, the target for strengthening is set at the 167.660 level, reflecting the pivot point since August 2008.
Supporting Factors:
Euro Strength: Despite a minor correction, the Euro maintains its resilience. Fundamental factors, such as the conservative monetary policy of the ECB, provide robust support for the Euro, particularly after touching a strong demand zone.
Japanese Inflation:
Despite a modest increase in Japan's CPI by 0.1% since October 2023, this can be viewed as a relatively insignificant impact that merely resulted in a temporary correction, presenting opportunities for short-term strengthening.
Historical Price Movement:
Historical price movement analysis indicates that EURJPY has the potential to reach its highest level since August 2008. This is attributed to the high-interest-rate policy implemented by the ECB in recent times, acting as a catalyst for this strengthening. Notably, the Euro has shown a robust increase against the JPY since October 30, 2023, with a notable surge of 3.44% as of the time of writing.
Risks and Considerations:
It's imperative to remember that trading always involves risks, and market conditions can change rapidly. Risks associated with changes in ECB policies, Japanese economic data, or geopolitical factors should be vigilantly monitored.
Disclaimer:
This analysis is for informational purposes only and does not constitute investment advice. Trading decisions should be based on in-depth analysis and an understanding of associated risks. Trading always carries risks, and past performance does not guarantee future results.
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.