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EURJPY Forecast – October-30-2023

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In today’s comprehensive EURJPY forecast, we will first scrutinize the current economic conditions in Japan. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURJPY pair.

Yen Stays Close to Intervention-Trigger Point

As market anticipation builds ahead of the Bank of Japan’s upcoming review of its monetary policy, the Japanese yen hovers near the pivotal 150 mark against the dollar—a threshold stirring intervention concerns. Despite prevailing market speculation, it’s largely predicted that the central bank will maintain its expansive monetary stance. Yet, there’s growing chatter among traders about a possible adjustment in the yield cap due to the pressure of enduring high inflation rates.

Recent statistics have put the spotlight on Tokyo’s core inflation rate, which not only gained momentum but also surpassed expectations this October. This trend acts as a precursor to broader price movements and adds to the pressure on the Bank of Japan to reconsider its monetary policy settings.

The decline in the yen’s value has not gone unnoticed by Japan’s financial authorities. Finance Minister Shunichi Suzuki issued a caution to currency market speculators, acknowledging the government’s heightened vigilance and “sense of urgency” regarding the yen’s fluctuations. Nonetheless, Suzuki stopped short of signaling any immediate intention for the government to step into the currency market.

EURJPY Technical Analysis

The EURJPY currency pair is currently undergoing a critical phase, testing the boundaries of the Ichimoku cloud. This cloud acts as a significant resistance to the bullish bias of the currency pair, making it a key factor in our technical analysis.

EURJPY Forecast - October-30-2023

EURJPY Forecast – Daily Chart

Taking a closer look at the 4-hour chart provides us with a more detailed insight into the EURJPY price action. Our comprehensive EURJPY technical analysis on the daily chart indicates a bullish market. Consequently, our primary strategy is to identify opportunities to go long on this currency pair.

EURJPY forecast

EURJPY Forecast – 4H Chart

At present, the EURJPY pair is trading within a narrow bearish channel and is positioned below the 158.6 pivot point. With the Relative Strength Index (RSI) nearing the crucial 50 level, we are on standby for the pair to confirm its bullish stance. This confirmation will be signaled by a close above the pivot point, which will also indicate an exit from the bearish Ichimoku cloud.

However, it’s important to note that as long as the pair continues to trade below the pivot point, our short-term target for the pair shifts to the S1 support level. This scenario underscores the dynamic nature of forex trading and emphasizes the need for traders to stay updated with market trends.

  • 30 October 2023
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