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EURJPY trade ideas

EURJPYEUR/JPY Interest Rate Differential, Upcoming Economic Data, and Directional Bias (May 2025) Interest Rate Differential Overview Eurozone (ECB): The European Central Bank is expected to cut rates by 25 basis points in June 2025, with inflation forecasts lowered (e.g., core CPI forecast for 2026 revised down to 1.7%). This signals a dovish bias and easing monetary policy ahead. Japan (BoJ): The Bank of Japan maintains a very low policy rate at 0.5%, with cautious communication about gradual rate hikes. The 10-year JGB yield recently declined to 1.32%, reflecting market skepticism about sustained tightening amid global uncertainties. The BoJ plans up to two more hikes by Q1 2026 but remains sensitive to financial market volatility and yen strength. Resulting Differential: The Eurozone currently offers a higher interest rate environment than Japan, but with expected ECB cuts and cautious BoJ tightening, the differential remains wide but may narrow over time. This wide differential has historically supported EUR/JPY strength. Upcoming Key Economic Data and Events Date Event Potential Impact on EUR/JPY May 7, 2025 ECB Meeting (no rate change expected) Market eyes June cut; dovish tone could weaken EUR temporarily. May 7, 2025 BoJ Policy Statement & Press Conference Watch for guidance on future hikes; dovish signals could weaken JPY further. May 15, 2025 Eurozone CPI Data (April) Soft inflation supports ECB easing, bearish EUR bias. May 15, 2025 Japan CPI Data (April) Inflation trends influence BoJ tightening path; lower inflation weakens JPY. May 30, 2025 Eurozone Economic Sentiment Weak sentiment may pressure EUR. June 6, 2025 ECB Rate Decision Expected 25bps cut could weaken EUR and EUR/JPY. Directional Bias and Price Outlook Current Price: Around ¥162.5 (early May 2025). Short to Medium Term: EUR/JPY is trending higher due to the wide interest rate differential favoring the euro and ongoing BoJ caution. Market expects ECB easing and BoJ gradual tightening, which may keep EUR/JPY supported but with volatility around ECB meetings and inflation prints. Lack of recent Japanese intervention to strengthen the yen has allowed EUR/JPY to drift higher. Summary Table Factor Impact on EUR/JPY Wide Eurozone-Japan rate differential Supports EUR/JPY upside ECB easing expectations Could pressure EUR short term BoJ cautious tightening Weakens JPY, supports EUR/JPY Soft Eurozone inflation data Bearish for EUR, limits gains Lack of JPY intervention Allows EUR/JPY to trend higher US-China trade tensions easing Risk-on sentiment supports EUR Conclusion EUR/JPY’s near-term strength is primarily driven by a wide interest rate differential favoring the euro, combined with a cautious Bank of Japan and expectations of ECB rate cuts. Upcoming inflation data and central bank meetings are key catalysts that could cause volatility. Traders should watch ECB June decisions and BoJ communications closely, as these will influence the pace of monetary policy divergence and EUR/JPY direction.
Long
by Shavyfxhub
EURJPY Trade IdeaEUR/JPY showed a minor sell-off as yen gains due to tariff uncertainty. It hits an high of 164.60 and is currently trading around 163.41. Intraday outlook is bullish as long as the support 163 holds. Technical Analysis: The EUR/JPY pair is trading above 34, below 55 EMA and above 200-4H EMA on the 4- hour chart. Near-Term Resistance: Around 164 a breakout here could lead to targets at 164.60/ 165/166.65/167. Immediate Support: At 163.40 if breached, the pair could fall to 163/162/ 161.49/160.50/160/ 159.25/158.85/158.25. Indicator Analysis 4-hour chart): CCI (50): Bullish Average Directional Movement Index: Neutral Overall, the indicators suggest a mixed trend Trading Recommendation: It is good to buy on dips around 163 with a stop loss at 162 for a TP of 165/166.65.
Long
by adiechiii
EUR/JPY Weekly Analysis📊 EUR/JPY Weekly Analysis 🔍 Technical Insight by Shaker Trading 🔻 Bearish Market Structure: Strong Descending Channel (Daily): The pair is currently moving within a clear downward channel on the daily timeframe, reflecting continued bearish pressure. Key Demand Zones (Daily): Several strong demand areas are visible on the daily chart, which could serve as potential bounce points. Overbought Signals on RSI & MACD: Both the RSI and MACD indicators are showing signs of overbought conditions, suggesting the bullish momentum may be weakening. 📌 Trading Outlook: We expect the bearish movement to continue. However, short-term pullbacks may occur from the demand zones before resuming the downtrend. Trade with caution and wait for confirmation signals. 🔥 Copy Trading for Free Let our team handle the trades while you sit back and watch the results – totally free of charge.
Short
by ShakerTrading
EURJPY Will Go Up From Support! Long! Take a look at our analysis for EURJPY. Time Frame: 1D Current Trend: Bullish Sentiment: Oversold (based on 7-period RSI) Forecast: Bullish The market is on a crucial zone of demand 163.939. The oversold market condition in a combination with key structure gives us a relatively strong bullish signal with goal 168.000 level. P.S Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Like and subscribe and comment my ideas if you enjoy them!
Long
by SignalProvider
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