The EUR/JPY followed the Friday technical rally into a new high for the week.
The Euro pulled out of an early dip in the week, closing higher for three straight days.
Japan inflation ticked higher on Friday, next week has Eurozone inflation in the barrel.
The EUR/JPY rose for the third straight trading day to chalk in a new high for the week above 163.60.
Broader markets caught a rally across the board for Friday as risk sentiment improved to close out the trading week. The Euro (EUR) caught a rise against the Japanese Yen (JPY) as risk bids buoyed assets across the board, and the Yen got pinned down by softer-than-expected National Consumer Price Index (CPI) numbers.
Japan’s National CPI ticked higher for the year into October, battering the Bank of Japan’s (BoJ) ongoing concerns about Japanese inflation falling too fast, too soon.
The BoJ remains concerned that Japanese price growth will eventually slump below the central bank’s 2% target, but National Japanese CPI, both headline and core (excluding fresh food prices) accelerated for the annualized period into October.
National CPI printed at 3.3%, over and above September’s 3%, while Nation CPI core-core (excluding both fresh food and energy prices) decreased from 4.2% top 4.0% compared to National Core CPI also rose from 2.8% to 2.9%.
With the BoJ firmly entrenched in its hyper-easy monetary policy stance, the JPY is set to take a long battering against the broader FX marketspace.
EUR/JPY Technical Outlook
The Euro remains firmly bullish against the Japanese Yen, trading into a 15-year high last week and remaining bid into the top end near 163.20.
The EUR/JPY is up over 26% against the Yen from 2023’s lows at 137.38, and despite a rough consolidation period through the third quarter, remains bullish after climbing from November’s lows near 159.00.
The nearest technical support is sitting at the 50-day Simple Moving Average (SMA) rising into 160.00, with the 200-day SMA trading far below price action just north of 153.00.
EUR/JPY Daily Chart
EUR/JPY Technical Levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/eur-jpy-sets-a-late-high-for-the-week-above-16360-in-friday-risk-rally-202311242044
