...

EURJPY Rose to 165 as Japan Bond Yields and Exports Rise

FxNews—Japan’s 10-year government bond yield rose above 1.07%. This increase happened because investors reacted to stronger-than-expected trade figures. In October, Japan’s exports grew by 3.1%, turning around a 1.7% drop from September and surpassing the forecasted 2.2% rise. Imports also increased by 0.4%, even though experts predicted a 0.4% decrease.

EURJPY Rose to 165 as Japan Bond Yields and Exports Rise
Japan 10 Year Bond Yield

BOJ’s Ueda Signals Cautious Approach to Rate Hikes

Meanwhile, on Tuesday, global bond yields initially fell due to heightened tensions in the Russia-Ukraine conflict, which prompted investors to seek safer investments. However, later in the day, worries about geopolitical issues eased.

Regarding monetary policy, the Governor of the Bank of Japan, Kazuo Ueda, stated on Monday that any future interest rate hikes would be gradual and based on the economy’s performance. He did not provide a specific timeline for when these increases might take place.

EURJPY Technical Analysis

EURJPY Technical Analysis - 20-November-2024
EURJPY Technical Analysis – 20-November-2024

As of this writing, the currency pair rose from 161.9 to approximately 164.3. This uptrend wave was technically expected because RSI 14 signaled a bullish divergence on November 19.

Currently, the EUR/JPY pair is testing the 165.0 resistance. However, the 4-hour chart formed an inverted candlestick pattern, hinting at a trend reversal. Concurrently, the Stochastic Oscillator depicts 91 in the description, meaning Euro is overpriced in the short term. These bearish signals are backed by the fact that EUR/JPY prices are below the 100-period simple moving average, making the primary trend bearish.

Overall, the technical indicators suggest the primary trend is bearish; the market is overbought and should resume its downtrend trajectory.

EURJPY Trend Outlook Remains Bearish Below 160.0

The EUR/JPY Immediate resistance is at 160.0, backed by the descending trendline, and the immediate support rests at the 164.0 mark, backed by the bullish fair value gap.

From a technical perspective, the downtrend could resume if EUR/JPY bears push the prices below the immediate resistance (164.0). In this scenario, the prices can dip to the 78.6% Fibonacci level at 162.9, resuming the bearish trajectory.

Also read: USDMXN Dips Amid Banxico Rate Cut

EURJPY Bullish Scenario

On the other hand, the current uptrend could extend if bulls (buyers) pull EUR/JPY above the immediate resistance (165.0). If this scenario unfolds, the next bullish target could be the 166.7 mark.

  • Support: 164.0 / 163.6 / 162.9
  • Resistance: 165.0 / 166.0 / 166.7

Latest Posts

Silver Dips Amid Overbought and China Economy Woes

FxNews—The XAG/USD prices dipped from $32.3, a decline that...

Gold Prices Hold Steady Ahead of Key US Inflation Report

FxNews—Gold hovered near $2,690 per ounce on Wednesday, pausing...

Natural Gas Prices Rally to $3.2 on High Demand

FxNews—U.S. natural gas began a bullish wave from $2.97,...

WTI Crude Oil Hits $69 as China Boosts Imports

FxNews—WTI crude oil futures recently reached about $69 per...

USDJPY Targets 153.3 After Bullish Breakout

FxNews—USD/JPY initiated a bullish trend from the 50.0% Fibonacci...

Silver Dips Amid Overbought and China Economy Woes

FxNews—The XAG/USD prices dipped from $32.3, a decline that...

Gold Prices Hold Steady Ahead of Key US Inflation Report

FxNews—Gold hovered near $2,690 per ounce on Wednesday, pausing...

Natural Gas Prices Rally to $3.2 on High Demand

FxNews—U.S. natural gas began a bullish wave from $2.97,...

WTI Crude Oil Hits $69 as China Boosts Imports

FxNews—WTI crude oil futures recently reached about $69 per...

Silver Prices Approach One-Month Highs Near $31

Silver prices have recently climbed above $31.10 per ounce,...

Gold Prices Reach $2660 Amid Global Tensions

Gold has climbed above $2,640 per ounce, reflecting its...

Gasoline Prices Rebound from 2-Month Lows

Gasoline prices rose from $1.92 (December 2, low) to...

Why U.S. Natural Gas Futures Are Rising

U.S. natural gas futures rebound as demand grows and...