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EURJPY Forecast – October-17-2023

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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. Stay tuned for insightful observations and key takeaways.

Japan’s Nikkei 225: Wall Street Optimism Breaks Slump

Reuters – On Tuesday, Japan’s Nikkei 225 Index saw a significant increase of 1.2%, closing at 32,040. Similarly, the more comprehensive Topix Index rose by 0.82% to reach 2,292. This positive shift broke a two-day slump and was influenced by the robust performance on Wall Street the previous night. The optimism surrounding corporate earnings seemed to overshadow the increase in Treasury yields.

Investors are now eagerly awaiting Japan’s inflation report for September, which is due later this week. This report is particularly significant as it precedes the central bank’s monetary policy meeting scheduled for October 30 and 31.

EURJPY Forecast - October-17-2023

Nikkei Daily Chart

In this upward trend, technology stocks were at the forefront. Notable gains were seen from Tokyo Electron (2.4%), SoftBank Group (2.7%), Keyence (1.6%), Advantest (1.2%), and Disco Corp (2.3%).

Other major players in the index also saw advancements, including Toyota Motor (0.8%), Fast Retailing (0.8%), and Sony Group (1.6%).

EURJPY Forecast: A Comprehensive Analysis

In our comprehensive EURJPY market analysis, we’ve noticed a significant trend. The EURJPY pair is currently trading within a bullish channel, indicating a potential upward momentum in the market.

This is further supported by the Relative Strength Index (RSI), a key technical indicator, which is hovering above the 50 level. The RSI’s position suggests that the market’s strength is favoring the bulls at the time of writing this EURJPY market analysis.

EURJPY Forecast - October-17-2023

EURJPY Forecast – October-17-2023

On October 3, an important event occurred. The EURJPY pair was unable to close below the Ichimoku cloud, a renowned technical analysis tool used to identify trend direction, support and resistance levels, and generate buy-sell signals. This inability to close below the Ichimoku cloud resulted in the continuation of the EURJPY uptrend, demonstrating the resilience of the bulls in this market.

EURJPY Forecast - October-17-2023

EURJPY Forecast – October-17-2023

However, every market has its challenges. For the EURJPY bulls, their main resistance lies at the 158.64 mark. This level represents a significant barrier that needs to be overcome for the bullish bias to continue.

The future of this currency pair hinges on whether the EURJPY bulls can close above this 158.64 resistance level. If they manage to achieve this feat, it would signal a strong bullish sentiment in the market and potentially pave the way for further upward movement.

In such a scenario, where the bulls triumph over the 158.64 resistance level, our next anticipated target for this currency pair would be around the 162.0 area. This would mark a significant milestone for the EURJPY pair and could potentially open up new trading opportunities for investors and traders alike.

In conclusion, while the current market conditions seem favorable for the bulls, it’s crucial to monitor key technical levels and indicators closely. As always, it’s important to consider multiple factors when conducting market analysis and making trading decisions.

  • 17 October 2023
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