EUR/JPY Forecast 08/12: Holds Firm (Chart)

(MENAFN- Daily Forex)

• EUR/JPY traded choppily on Friday, with buyers supporting each dip as sentiment toward the yen remains weak.
• Rising JGB yields and BOJ policy uncertainty shape direction, while key levels at 180, 182, and 185 yen define near-term momentum and support.

The euro has been choppy against the Japanese yen during the trading session on Friday, as we continue to see a little bit of support in this market anytime it drops. But you also need to keep in mind that the Japanese yen itself is facing a lot of noise due to the idea that the Bank of Japan will have to keep its interest rate fairly low, but the bond market at the same time is seeing yields rise in Japan; this is literally going to move JGB expectations. So, we'll have to wait and see how that plays out from a longer-term standpoint. But as things stand right now, the Japanese yen is not a currency that a lot of people want to own. And that, of course, translates into a higher pair here.

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Ultimately, short-term pullbacks I think offer buying opportunities, and it's probably worth noting that the 180 yen level is a large round psychologically significant figure that I think continues to offer short-term support. To the upside, the 182 yen level is probably a target.

EURUSD Chart by TradingView

And at that point in time, I think you have to look at this as a market that if we can break above there, then we will almost certainly go looking to the 185 yen level. If we were to break down, the 50-day EMA is closer to the 178 yen level and rising. So, I think that is an area buyers might look to pick up a little bit of value as well.

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