empty
17.01.2025 12:32 PM
EUR/JPY: Analysis and Forecast

This image is no longer relevant

Today, the EUR/JPY pair is attempting to attract buyers, trading slightly above the psychological level of 160.00.

This image is no longer relevant

However, this rise lacks bullish conviction due to divergent monetary policy outlooks between the Bank of Japan (BoJ) and the European Central Bank (ECB). This suggests that any further upward movement might be viewed as a selling opportunity.

Recent comments from BoJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino have heightened expectations of an interest rate hike at the next monetary policy meeting scheduled for next week. Additionally, increasing inflationary pressures in Japan further bolster the prospects of tighter monetary policy. As a result, a potential rate hike in Japan would strengthen the yen and limit the upside for the EUR/JPY pair.

On the other hand, the euro continues to face challenges in attracting significant buyers amid growing expectations that the ECB may further lower borrowing costs due to concerns over the eurozone's fragile economy. Rising core annual inflation in Germany has also intensified fears of stagflation in the region's largest economy, further capping the recovery of EUR/JPY.

For short-term trading opportunities, it would be prudent to focus on the release of the Eurozone Consumer Price Index (CPI) later today.

Despite these efforts, spot prices remain on track for their third consecutive weekly loss. The fundamental backdrop clearly favors the bears, reinforcing expectations of the continuation of the multi-week downward trend.

From a technical perspective, oscillators on the daily chart remain in negative territory, confirming the likelihood of a persistent downtrend.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Pound Attempts to Hold Within the Bullish Channel

The United Kingdom is among the few G20 countries that got off relatively lightly—it was hit with a 25% tariff on car exports and a 10% tariff on other goods

Kuvat Raharjo 00:58 2025-04-08 UTC+2

The Euro Adopts a Coyote Tactic

If someone strikes your left cheek, there's no need to plead for mercy. Interestingly, more than 50 countries, according to the White House, have done just that. But not China

Marek Petkovich 00:56 2025-04-08 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is regaining ground after Friday's decline, trading just below the psychological level of 1.1000 amid mixed signals. The U.S. dollar is struggling to capitalize

Irina Yanina 18:55 2025-04-07 UTC+2

XAU/USD. Analysis and Forecast

At the moment, gold has halted its corrective decline from the all-time high reached last week. The recent plunge in global financial markets, triggered by the mutual tariffs initiated

Irina Yanina 18:52 2025-04-07 UTC+2

Jerome Powell Is Not Ready to Intervene

Investors were deeply disappointed when Federal Reserve Chair Jerome Powell made it clear during his Friday speech at the end of last week that he does not intend to intervene

Jakub Novak 11:11 2025-04-07 UTC+2

Markets Descend Further into Chaos (Expect Renewed Declines in #SPX and #NDX)

The global market crash continues. The trade war declared by Donald Trump on much of the world is in full swing. Investors have stopped reacting to economic data, even though

Pati Gani 10:08 2025-04-07 UTC+2

The Market Left Empty-Handed

The market appeared to have bottomed out; however, someone knocked from below. A two-day selloff triggered by Donald Trump's sweeping tariffs turned out to be the fourth-worst in the history

Marek Petkovich 09:44 2025-04-07 UTC+2

What to Pay Attention to on April 7? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Monday. After last week's developments, we believe these events will have no impact on the movements of either currency pair. Nonetheless, today's

Paolo Greco 07:03 2025-04-07 UTC+2

EUR/USD Weekly Preview: U.S. Inflation Reports and the Fate of the "Big Tariffs"

The upcoming week promises to be just as volatile as the previous one. The so-called "big tariffs," which are set to take effect on April 9, are at the center

Irina Manzenko 06:13 2025-04-07 UTC+2

GBP/USD Pair Overview – April 7. The British Pound Delivered a Major Surprise on Friday

The GBP/USD currency pair rose 280 pips between Wednesday and Thursday, only to crash by 340 on Friday. These kinds of "flights" have become a regular occurrence lately. While

Paolo Greco 03:23 2025-04-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.