empty
09.01.2025 12:23 PM
EUR/JPY: Analysis and Forecast

This image is no longer relevant

The EUR/JPY pair continues to face selling pressure, hitting a three-day low around 162.60 during the Asian session.

This image is no longer relevant

This decline is attributed to the strengthening Japanese yen, driven by positive economic data from Japan. Base wages increased by 2.7%, the highest level since 1992. Accelerating inflation, which rose from 2.6% to 3.4%, boosts expectations of an interest rate hike by the Bank of Japan, further supporting the yen and pressuring the EUR/JPY pair. Additionally, cautious market sentiment, geopolitical risks, and concerns over trade wars enhance the yen's status as a safe-haven currency.

Meanwhile, the euro faces pressure from weak economic data out of Germany. Specifically, German manufacturing orders unexpectedly fell by 5.4% in November, while retail sales dropped by 0.6%. These figures exacerbate concerns about eurozone economic instability and reinforce the dovish stance of the European Central Bank.

From a technical perspective, the recent failure to break above the 200-day Simple Moving Average (SMA) also signals bearish market sentiment, suggesting the short-term trend for EUR/JPY may continue downward. However, oscillators on the daily chart remain in positive territory. While the fundamental outlook is unfavorable for the euro against the yen, sellers should exercise caution as not all technical factors align with the bearish fundamental narrative.

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

XAU/USD. Analysis and Forecast

Gold is attracting some sellers for the second day in a row, despite the absence of any clear fundamental catalyst for a decline. Most likely, this is due to trading

Irina Yanina 11:50 2025-04-04 UTC+2

Old market rules broken

Someone is not telling the truth. Donald Trump insists that everything is going well and that the markets will flourish. But the S&P 500 just posted its worst 10-week start

Marek Petkovich 11:10 2025-04-04 UTC+2

The Growth of the Gold Price Has Stopped. What Is the Reason? (There Is a Possibility of a Local Corrective Pullback in #SPX and Bitcoin)

The global market crash triggered by the announcement of sweeping tariffs personally introduced by the U.S. President continues into Asian trading sessions. While the decline has slowed, there is still

Pati Gani 09:09 2025-04-04 UTC+2

What to Pay Attention to on April 4? A Breakdown of Fundamental Events for Beginners

Only a few macroeconomic events are scheduled for Friday, but they may trigger a new storm. The market has not yet recovered from Wednesday evening's events when Trump imposed trade

Paolo Greco 07:29 2025-04-04 UTC+2

GBP/USD Pair Overview – April 4: Does Anyone Still Care About Nonfarm Payrolls and Unemployment?

The GBP/USD currency pair posted a 300-pip upward move from Wednesday evening through Thursday. Given the current situation, this may not end the dollar's decline. To be honest, the fall

Paolo Greco 06:07 2025-04-04 UTC+2

EUR/USD Pair Overview – 4: Trump's Tariffs Crash the Dollar Once Again

The EUR/USD currency pair gained nearly 300 pips between Wednesday and Thursday. We saw a repeat of the situation in early March when the U.S. dollar fell by 400 pips

Paolo Greco 06:06 2025-04-04 UTC+2

The Dollar Shot Itself in the Foot

Don't create a problem for someone else; you might get caught in it yourself. Donald Trump sought to leverage the United States' leading position in the global economy by announcing

Marek Petkovich 00:50 2025-04-04 UTC+2

EUR/USD. Nonfarm Payrolls and the Greenback

Can strong Nonfarm Payrolls help the dollar? This question is complicated, as the market is currently too shaken by Donald Trump's new tariffs. Traditional fundamental factors have been pushed into

Irina Manzenko 00:46 2025-04-04 UTC+2

USD/JPY – Analysis and Forecast

The Japanese yen is showing strong gains amid broad-based selling of the U.S. dollar, keeping the USD/JPY pair below the key psychological level of 147.00. Investor concerns over the potential

Irina Yanina 18:22 2025-04-03 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.