Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Octa trading broker
Open trading account
Back

EUR/JPY Price Forecast: Key resistance level emerges above 162.00

  • EUR/JPY climbs to near 161.10 in Friday’s early European session, up 0.45% on the day. 
  • The positive view of the cross remains in place above the key 100-period EMA with the bullish RSI indicator. 
  • The immediate resistance level emerges near 162.35; the key support level to watch is at the 160.05160.00 region. 

The EUR/JPY cross gains traction to around 161.10 during the early European trading hours on Friday. The Japanese Yen (JPY) softens against the Euro (EUR) on a positive tone around the equity markets and improved risk sentiment. Furthermore, a source familiar with the Bank of Japan's (BoJ) thinking noted that rising global uncertainty could affect the rate-hike timing. This, in turn, contributes to the JPY’s downside and creates a tailwind for EUR/JPY.

Technically, the bullish outlook of EUR/JPY remains in play, with the cross holding above the key 100-period Exponential Moving Average (EMA) on the daily chart. Further upside cannot be ruled out as the 14-day Relative Strength Index (RSI) stands above the midline around 56.0.  

In the bullish case, the key resistance level for the cross is located near 162.35, representing the upper boundary of the Bollinger Band and the high of March 12. Sustained trading above this level could attract some buyers to 162.70, the high of January 28. Further north, the next hurdle is seen at 163.22, the high of January 22. 

On the downside, the low of March 13 and the psychological level in the 160.05160.00 zone act as a crucial support level for the cross. Extended losses could see a drop to the lower limit of the Bollinger Band at 159.75. A decisive break below the mentioned level could pave the way to 159.35, the 100-period EMA.  

EUR/JPY 4-hour chart

Japanese Yen FAQs

The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

 

 

 

FX option expiries for Mar 14 NY cut

FX option expiries for Mar 14 NY cut at 10:00 Eastern Time via DTCC can be found below.
Read more Previous

US Dollar Index holds gains near 104.00 ahead of Michigan Consumer Sentiment Index release

The US Dollar Index (DXY), which tracks the US Dollar (USD) against six major currencies, extends its winning streak for a third consecutive day amid improved Treasury yields.
Read more Next