EUR/JPY Forecast 06/10: Looks For Bounce From Key Support

(MENAFN- Daily Forex) The euro continues to grind lower, but is sitting in the middle of a demand zone that we are well aware of. At this point, buyers are trying to get involved. That being said, this is a pair that could lag a bit.

EUR/JPY

The euro has fallen a bit during the trading session on Monday, but it has seen a little bit of a pushback. Ultimately, the interest rate differential does favor the euro, but part of that is due to concerns about French debt, and that is a major detriment to the currency. Those are not higher interest rates because the economy is hot. France is the second-largest economy in the European Union, and this will continue to be an issue for traders when it comes to being overly bullish on the euro currency in general.

Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money Noisy zone of Confluence

Market participants continue to see a lot of noisy behavior between the 178 yen and the 175 yen levels. With that being said, market participants continue to see a lot of noisy behavior between the ¥178 and ¥175 levels. I do like the idea of shorting the yen. It may not be here, though. We'll just have to wait and see whether or not that takes off.

If we can break above the ¥178 level, then it could open up a move to the ¥181 level. But if we were to break down below the ¥175 level, then we could see this pair fall apart. That would probably see the euro falling against everything else, as we've seen, and the Japanese yen strengthening. This is a situation where we are watching a lot of things at the same time.

EURUSD Chart by TradingView

Ultimately, this is a market that I think is trying to find a situation where we are trying to bounce. We are seeing buyers coming in to pick up value, but this may be one of the weaker pairs when taking into account the yen as the denominator.

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