Today we would take a look at the EUR/JPY currency pair. This trading instrument is particularly interesting in that both currencies are doing relatively well on their own. This would explain why after some substantial gains made by the euro this summer, ever since mid-September the pair has been trading in a narrow range between around 132.000 and 134.000.
On the one hand, the euro throughout 2017 has been strong enough to shelter all the storms that hit it - Brexit, multiple elections around the EU, Catalonia’s independence, Germany’s parliamentary issues - every bit of news that brought a level of uncertainty to the pair was easily overcome on the basis of solid economic growth across the region. We expect the reports to continue in this fashion. On the other hand, the yen saw a lot of volatility - traders turned towards it often when North Korea and the US had differences, and Japan also had preliminary elections. However, lately everything has been quiet in Japan and economic data shows progress in their otherwise stagnant economy.
Right now the prices remain in the same channel as before. We have a daily pivot point located at the level 132.63. Below it we have support levels at 132.19 and 131.82. If the pair trends in a bullish way and moves beyond the pivot, then look for a retesting of the resistances at 133.00 and 133.44. At the moment of this article’s publication the EUR/JPY is trading around 132.85, above the pivot point. The indicators of technical analysis are giving us a buy signal.
