As the world’s best investment manager and financial market journalist, I bring you the latest update on the EUR/JPY cross, which has turned lower for the third consecutive day and hit a one-month low on Wednesday. Stay tuned as I break down the key factors influencing this downward trend and how it could impact your finances.
Key Points:
- Suspected intervention and BoJ rate-hike bets support the JPY: Japanese authorities have intervened in the market, while expectations of a rate hike by the Bank of Japan are boosting the Japanese Yen.
- Softer risk tone benefits the JPY: A weaker global risk sentiment is favoring the safe-haven JPY and putting pressure on the EUR/JPY cross.
- ECB’s view on Eurozone economic prospects weighs on the EUR: The European Central Bank’s pessimistic outlook on the Eurozone economy is weighing on the shared currency.
Analysis:
The EUR/JPY cross is facing downward pressure due to a combination of factors, including suspected intervention by Japanese authorities, BoJ rate-hike expectations, and a softer global risk sentiment. The Eurozone’s economic outlook and the possibility of a rate cut by the ECB are also contributing to the cross’s bearish trend.
Technical analysis suggests that the path of least resistance for the EUR/JPY cross is to the downside, with a potential drop below the 168.00 level towards the 100-day Simple Moving Average support. Market participants are closely watching the flash Eurozone PMIs for trading opportunities in the short term.
Overall, the current market conditions indicate a bearish outlook for the EUR/JPY cross, with potential further downside in the near term. Stay informed and be prepared to adjust your investment strategies accordingly to navigate these challenging market dynamics.