EUR/JPY Forecast Today - 02/04: Euro Seeks JPY Hold (Chart)


(MENAFN- Daily Forex)

  • The euro initially tried to rally a bid during the early hours on Monday, but then drifted a bit lower against the Japanese yen.
  • That being said, I still believe that this market eventually goes higher, as we have such a huge interest rate differential between the 2 currencies.
  • Granted, I don't necessarily think that the market shoot straight up in the air, but I do think that it's only a matter time before the buyers jump back in insert taken advantage of value.



The interest rate differential continues to favor Europe, but even then, you have to keep in mind that the ECB is likely to cut rates later this year. That being said, I still think the Japanese yen remains a bit of a punching bag for the currency markets , and therefore I'm looking for an opportunity to start buying this pair again. I need to see some type of short-term bounce to take advantage of, and then I will get long yet again of Japan

The Bank of Japan is of course in focus, due to the fact that the Japanese have recently raised interest rates. That being said, the interest rate is still just 0.1%, so I would not read too much into it being tighter down the road. In fact, they have since walked back the idea of raising interest rates to aggressively, so I think you probably have a situation where it's only a matter of time before traders will continue to punish the Japanese in.

Forex Brokers We Recommend in Your Region See full brokers list 1 Read full review Get Started

Underneath, we have the 50-Day EMA coming into the picture offering a bit of support, and I think at this point in time, it continues to act as a bit of a short-term trendline. I'm simply waiting for some type of short-term bounce to take advantage of so I can get on the“right side of the V” after that bounce, then you have a place from which to place your stop loss . Ultimately, the market I think will revisit the highs, and I do not think that we have seen the swing high for the longer term at this point in time. I have no interest in shorting this market.

For additional & up-to-date info on brokers please see our Forex brokers list .

MENAFN02042024000131011023ID1108050318


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.