EUR/JPY Price Forecast: Slips below 178.00 as bearish bias strengthens
EUR/JPY remains subdued for the fourth successive day, trading around 177.70 during Asian hours on Wednesday. Technical analysis of the daily chart shows that the currency cross remains confined within a descending channel pattern.
The EUR/JPY currency cross is currently trading around 177.70, having slipped below the 178.00 level as bearish bias strengthens. Technical analysis indicates that the pair is confined within a descending channel pattern, with the short-term Exponential Moving Average (EMA) staying under the longer-term EMA, suggesting a capped price ceiling.
The 14-day Relative Strength Index (RSI) at 31.77 hints that selling pressure may be slowing, but not reversing decisively. Analysts at Scotiabank note that the Japanese Yen has been a standout performer in G10 trading, driven by comments from Japan's Vice Minister for International Affairs, Atsushi Mimura, who urged market participants to heed recent warnings from Japanese officials.
The Bank of Japan's (BoJ) ultra-loose monetary policy, implemented in 2013 to stimulate the economy and fuel inflation, has contributed to the Yen's depreciation against major currency peers.
Brief written by urgent.news from FXStreet's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
