Note: The EUR/JPY forecast is updated during every weekend by taking into account the various factors which are expected to affect the relative price action of Japanese yen and the euro.
EUR/JPY Weekly Outlook and Predictions
EUR/JPY remained in a volatile sideways mode during the past week. The pair had touched the high of 141.27 before closing for the week at 140.80.
The resistance faced exactly at January 28, 2014's 141.27 is keeping us a bit cautious and hence neutral for further gains, till the pair does not break above 141.27 decisively. However, we remain in favor of further recovery. A break over 141.27 should target the resistance zone of 143.05 to 143.17 of January 2nd week, next. A failure of that resistance will confirm the bottoming to target a retest of 145.00 level and then possibly 145.69 and above.
On the downside the first critical support is at 139.19. A failure of that support will start arguing with the immediate bullish outlook, however the focus will turn downwards only if the support at 138.67 fails. Such a move should take EUR/JPY towards 137.38/137.58 support first but such a move may also result in a retest of the recent 136.23 and then extend the decline lower.
From the longer-term perspective the overall outlook stays bullish. The break over 145.00 key psychological level had come after over 5 years. The pair had dropped below 145.00 during September/October 2008. That was a historical time which had seen a drop from 159.71 to 116.91 i.e. 4280 pips in a short time. Do check the post "Is EUR/JPY coming out of the reverse gear
Considering these facts, we stay in favor of further rise sooner or later. A break over 145.69 should target a test of 150.00 i.e. the next key psychological level sooner or later. Above 150.00 the pair may even target 152.07 which is the 76.4% retracement of the fall from 169.98 of mid 2008 to 94.12 of July 2012.
Please check the relative strengths of recent economic releases from Europe and Japan:
More Resources for EUR/JPY Analysis
We also post EUR/JPY chart alerts whenever there is any specific observation which may result into either a big or unexpected movement.
You may also check EUR/JPY Correlation with other currency majors.
EUR/JPY Interest Rates Comparison
(For Carry Trades)
Convert Euro to Japanese Yen.
This update on EUR/JPY outlook is written by the analysts of ForexAbode.com. Do contact us for any questions, suggestions or feedback.