EUR JPY

Divergent monetary policies between the ECB and BOJ alongside trade wars and demand for safety could make things tricky for EUR/JPY bulls in 2025.

Japanese Yen strength has taken a step back in December, and USD/JPY is testing a big spot of support as EUR/JPY tests a key spot of resistance.

JPY strength ran into the December open but since USD/JPY and EUR/JPY set fresh lows last Tuesday, prices have been pulling back.

While the headlines out of Europe have been largely negative, price action in the Euro hasn’t quite matched that pace. EUR/USD continues to push-higher while holding 1.0500 and EUR/JPY has pulled back from the early-week sell-off.

French political chaos grabs headlines, but EUR/JPY and GBP/JPY aren't flinching. Rate differentials are steering the ship. Are morning star patterns signalling a reversal? We break down setups cutting through the noise.

Both USD/JPY and EUR/JPY have sold off over the past week and with the BoJ policy review expected in a couple of weeks, Yen-strength scenarios seem to be gaining steam.

The EUR/JPY outlook is increasingly tuning bearish, but it must continue holding below the 160.00 handle to keep the bears happy. I reckon the pair is heading down to 155.00 in the coming days.

GBPUSD, EURJPY: Inflation indicators between the eurozone and the Japanese economy are due this week, following the jump in UK’s inflation rates next week, adding reversal potential to the dollar’s rally ahead of Trump’s presidency.

EUR/USD has vacillated wildly along with election odds and US expectations over the past few days. EUR/JPY has continued to hold a bullish trend following the topside breakout.

Stronger EU data and pushback on cuts from ECB sent EUR/USD up to its 200-day MA ahead of risk events. I also assess the trend structures of yen pairs to sort the good from the bad.

Yen-weakness has remained through Japanese general elections and both EUR/JPY and GBP/JPY have put in clean breakout moves from ascending triangle formations.

EUR/USD finally found some element of support that could hold a low as the pair looks to break what’s been a very bearish streak. Meanwhile, EUR/JPY looks bullish with another breakout to start this week.

EUR/USD continued an aggressive sell-off but EUR/JPY put in a clean breakout from an ascending triangle. Meanwhile, EUR/GBP has set the initial steps for a possible bounce.

The EUR/USD held near 1.0850, near its lowest level since early August. The other euro crosses were mixed. However, the EUR/JPY forecast hadn’t quite turned bearish yet as it held above a key support and traders watched whether the USD/JPY pair would hold its latest attempt to break the 150.00 in response to a series of US data beats.

Conditions for euro bears have been ripe for the past three weeks with renewed bets of an ECB cut alongside scaled-back bets of ECB easing. But given the depth of the selloff on EUR/USD, it could be vulnerable to a bounce unless a dovish cut is delivered.

EUR/JPY and GBP/JPY traders have already priced in the current projected path of interest rates from the ECB, BOE, and BOJ, so the main market driver moving forward will be how those expectations evolve.

The massive “yen carry trade” unwind was technically- and sentiment-driven, and could absolutely run further after pausing for a few weeks. EUR/JPY and GBP/JPY are in play.