EURJPY trade ideas
EURJPYEUR/JPY Rate Differential and Fundamental Outlook for May 2025
Interest Rate Differential
ECB Main Refinancing Rate: 2.40% (after a 25 bps cut in April 2025).
BoJ Policy Rate: 0.50% (held steady in May 2025).
Rate Differential: 1.90 percentage points (EUR yield advantage).
This gap supports EUR/JPY upside, but the ECB’s easing bias and BoJ’s cautious stance suggest potential narrowing later in 2025.
Key May 2025 Fundamental Drivers
Eurozone (EUR)
GDP Growth:
Eurozone GDP grew 0.4% QoQ in Q1 2025, with Germany expanding 0.2%.
Resilient growth reduces urgency for aggressive ECB easing but does not halt the dovish trajectory.
ECB Policy Outlook:
Markets price in a 25 bps ECB rate cut in June, with further easing expected in 2025.
ECB remains data-dependent amid trade tensions and moderating inflation (2.1% in Germany, 0.8% in France).
Japan (JPY)
BoJ Policy Stagnation:
BoJ kept rates at 0.50% in May, citing risks from U.S. tariffs and downgrading 2025 GDP growth to 0.5%.
Core CPI forecasts trimmed to 2.2% for 2025 and 1.7% for 2026, delaying hawkish shifts.
Trade War Risks:
U.S.-China trade de-escalation optimism reduces JPY’s safe-haven appeal, but Japan’s export reliance keeps growth vulnerable.
Global Factors
Risk Sentiment: Easing U.S.-China tensions favor risk-on flows, weakening JPY.
Fed Policy: Delayed Fed cuts (4.50% rate) bolster USD, indirectly pressuring EUR/JPY via EUR/USD dynamics
ECB Rate Cuts (Expected) Bearish for EUR (narrows rate gap)
BoJ Dovish Hold Limits JPY strength, supports EUR/JPY upside
Eurozone Growth Resilience Mild EUR support, delays aggressive ECB easing
Trade Optimism Risk-on sentiment weakens JPY, bullish for EUR/JPY
Japan’s Growth Downgrade JPY weakness on economic concerns
Base Case:
EUR/JPY likely trades with a moderate bullish bias in May, supported by
The still-significant rate differential (1.90%).
Risk-on flows amid trade de-escalation.
BoJ’s growth and inflation downgrades limiting JPY strength.
Downside Risks:
Surprise ECB dovish rhetoric or faster-than-expected rate cuts.
Escalation in U.S.-Japan/EU trade tensions reviving JPY safe-haven demand.
Summary
The 1.90% rate differential and improving risk sentiment favor EUR/JPY gains in May, but the ECB’s easing trajectory and Japan’s structural challenges create volatility. Traders should monitor:
ECB June Policy Signals (potential 25 bps cut).
Eurozone Inflation Data (May 30–31).
BoJ Rhetoric on tariffs and growth.
While near-term upside persists, the pair’s longer-term outlook remains bearish as ECB cuts erode the rate advantage.
EURJPY: Short Trade Explained
EURJPY
- Classic bearish setup
- Our team expects bearish continuation
SUGGESTED TRADE:
Swing Trade
Short EURJPY
Entry Point - 163.91
Stop Loss - 164.69
Take Profit - 162.42
Our Risk - 1%
Start protection of your profits from lower levels
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EURJPY Will Go Up From Support! Long!
Take a look at our analysis for EURJPY.
Time Frame: 1D
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is on a crucial zone of demand 163.939.
The oversold market condition in a combination with key structure gives us a relatively strong bullish signal with goal 168.000 level.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
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Trendzilla vs Chop Kong (EUR/JPY)The bias for EUR/JPY - in our view - is higher
On the weekly timeframe:
A) WMA has flattened out and price held above it B) downtrend line broken and held
On daily timeframe:
EUR/JPY just broke resistance for possible breakout trade up to the olf high to 166 - and possibly beyond
Thoughts ?
EUR-JPY Free Signals! Sell!
Hello,Traders!
EUR-JPY keeps growing
But the pair will soon hit
A horizontal resistance
Of 164.930 from where
We can enter a short trade
With the Target Level of 163.778
And the Stop Loss of 165.018
Sell!
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EURJPY Short Term Buy Idea Update!!!Hi Traders, on March 27th I shared this idea "EURJPY - Expecting The Price To Bounce Higher Further"
Expected bullish continuation higher until the two Fibonacci support zones hold. You can read the full post using the link above.
Price moved as per the plan here!!!
Price respected the second Fibonacci support zone and bounced higher.
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EUR/JPY for JPY Strength into BoJEUR/JPY has held resistance at a familiar spot on the chart, from the 163.00 level up to 163.38. This has been the same resistance that's held in the pair for the past seven weeks and for those looking for JPY-strength around tonight's BoJ rate decision, this can be an attractive venue. USD/JPY would have the complication of the 140.00 level which has been major support but for EUR/JPY, the broader context here remains digestion, with a descending triangle formation holding on the weekly chart. Key support for the formation is at 155.00 and logically the 160.00 level looms large for downside setups as that price held a pensive series of tests earlier in April. - js
EURJPY hit TP within 16 minutes.Yes! I love the EUR :) The signal I shared just moments ago has reached Take Profit. You can still wait for the other TP levels to be hit. That’s enough for today.
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EURJPY SellLadies and gentlemen, I’ve activated a sell position on EURJPY. The TP level looks quite promising. As shown on the chart, there are 4 different TP levels — feel free to adjust your trade accordingly. I’ll personally be setting my position with a 1:2.50 Risk-Reward Ratio.
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EURJPY – Technical Outlook & Strategic Perspective (Apr 29 – May
📊 EURJPY
Over the recent sessions, I’ve identified an interesting structure forming on the **EUR/JPY** pair, pointing to a potential **short-term bullish move** over the next **2 to 3 days** before a possible trend reversal starts to materialize.
My bias is based primarily on the **presence of Fair Value Gaps (FVGs)** that have yet to be filled. These imbalances suggest the market may seek to revisit these zones to balance liquidity. Additionally, there are clear signs of buyer defense in a sensitive price region, reinforcing the thesis of a **technical recovery** before any long-term directional decision.
🧠 :
- Support zone respected after selling pressure eased.
- FVGs identified in alignment with a potential pullback structure.
- Expectation of a bullish move toward upper liquidity zones, with partial TPs set near **162.546** and extended targets around **163.770/163.776**.
🎯 **Plan:**
- Entry already triggered upon confirmation.
- Stop-loss safely placed below recent swing low (161.770).
- Take Profits aligned with FVGs and a risk-to-reward ratio of over 1:2.
🔎 *Strategic Note:* Once these value zones are filled, I’ll be closely monitoring for **Change of Character (CHOCH)** signals that could confirm the start of a new cycle on the pair. For now, my focus is on **gap-filling and market equilibrium** before any long-term directional play.
📍Posted by: Emerson Massawe
Trader | Strategist | COO of Rodaviva | CEO of Xerof Capital
Bearish Outlook on EurjpyA bearish outlook on EUR/JPY (Euro/Japanese Yen) typically stems from either Euro weakness, Yen strength, or a combination of both. Here are several current or general themes that could support a bearish bias:
1. Risk-Off Sentiment (Yen Strength)
The Japanese Yen is a safe-haven currency, which tends to strengthen during global risk aversion (e.g., geopolitical tensions, stock market declines, or economic uncertainty).
If equities fall or global sentiment sours, JPY demand can rise, pushing EUR/JPY lower.
2. ECB Dovishness (Euro Weakness)
If the European Central Bank (ECB) signals or enacts rate cuts, this weakens the Euro.
For instance, recent soft Eurozone inflation or poor economic data may prompt ECB easing, lowering EUR/JPY.
3. BOJ Policy Normalization (JPY Strength)
If the Bank of Japan (BOJ) continues shifting away from ultra-loose monetary policy (e.g., exiting negative rates, allowing JGB yields to rise), this could strengthen the Yen.
Any hawkish surprise from the BOJ is typically JPY-positive.
4. Technical Setup
On the charts, if EUR/JPY is failing at resistance (e.g., near a long-term high or a fib retracement), or showing bearish divergence on RSI/MACD, it could signal a top.
A break below key support zones (e.g., 160.00 or 158.00) might accelerate downside momentum.
5. Positioning and Sentiment
If traders are heavily long EUR/JPY (crowded trade), a reversal or sharp correction is more likely if sentiment shifts.
EURJPY strong bearish expectations
OANDA:EURJPY strong bullish expectations i am have, but things will not go like expected..
Currently price in DESCENDING CHANNEL, in moment we are have break of same, but price is make revers in zone and pushing now bearish.
Here now exepcting fall till trend line.
SUP zone: 163.000
RES ozne: 159.500, 158.500
EUR/JPY BEARS ARE STRONG HERE|SHORT
Hello, Friends!
We are going short on the EUR/JPY with the target of 159.106 level, because the pair is overbought and will soon hit the resistance line above. We deduced the overbought condition from the price being near to the upper BB band. However, we should use low risk here because the 1W TF is green and gives us a counter-signal.
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