empty
29.01.2025 01:34 PM
EUR/JPY. Analysis and Forecast

This image is no longer relevant

The EUR/JPY pair has encountered difficulties in securing a position above the key psychological level of 162.00. This decline is primarily driven by increased demand for the Japanese yen. Despite a generally positive sentiment in equity markets, expectations of further interest rate hikes by the Bank of Japan this year continue to provide support for the yen. Additionally, concerns about the economic impact of US President Donald Trump's trade policies reinforce the yen's status as a safe-haven asset, further limiting EUR/JPY's upward potential.

From a technical perspective, the pair's repeated failures to break through the 164.70 level, which aligns with the 200-day simple moving average (SMA), suggest the formation of a multi-top pattern on the daily chart. While oscillators are gradually shifting into negative territory, indicating potential downside pressure, caution remains warranted before opening short positions, particularly ahead of the European Central Bank (ECB) meeting on Thursday. However, early signals still point toward a possible decline in the pair.

Key support levels are positioned between 161.55 and 161.50, near the 50-day SMA, followed by the 161.00 mark. A break below this threshold could expose the pair to further losses, potentially pushing it toward 160.50, with additional downside extending to the psychological 160.00 level and the monthly low near 159.70.

On the other hand, the intraday high around 162.50 represents immediate resistance before the 163.00 level. A breakout above this barrier could trigger a short-covering rally, targeting the 163.65–163.70 resistance zone, followed by a potential return to 164.00. If momentum persists, the pair may aim for a test of the 200-day SMA, signaling a possible shift in trend dynamics.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Gold is experiencing a slight decline after reaching a new all-time high, remaining in a defensive stance. Currently, bullish traders are exercising caution, as indicated by overbought conditions

Irina Yanina 10:29 2025-03-20 UTC+2

Fed's message music to bulls' ears

The Fed is not throwing a lifeline to the S&P 500, but does it need one? Lifelines are for those drowning, while the market is merely spooked by a fleeting

Marek Petkovich 09:05 2025-03-20 UTC+2

Markets Are Stuck in a Vicious Circle with No Exit in Sight (Potential Decline for Bitcoin and Gold Prices)

The markets are currently experiencing significant shock due to a prevailing negative sentiment that looms over them like a heavy burden, with no resolution in sight. Given this situation

Pati Gani 08:23 2025-03-20 UTC+2

What to Pay Attention to on March 20? A Breakdown of Fundamental Events for Beginners

There are several macroeconomic events scheduled for Thursday, primarily in the UK. Key reports will include the unemployment rate, changes in the number of unemployed individuals, and average wages

Paolo Greco 07:15 2025-03-20 UTC+2

GBP/USD Pair Overview – March 20: Bank of England Vote May Cool Bullish Sentiment

The GBP/USD currency pair traded very calmly on Wednesday, considering the evening movements. As a reminder, we are not analyzing the results of the Federal Reserve meeting

Paolo Greco 02:18 2025-03-20 UTC+2

EUR/USD Pair Overview – March 20: The Euro Holds a Strong Leadership Position

On Wednesday, the EUR/USD currency pair experienced a slight pullback but failed to consolidate below the moving average line. As per tradition, we will not analyze the outcome

Paolo Greco 02:18 2025-03-20 UTC+2

EUR/JPY: Mixed Outcomes of the Bank of Japan's March Meeting and Germany's "Debt Brake" Reform

The Bank of Japan has concluded its March policy meeting, delivering the most anticipated baseline scenario—keeping all monetary policy parameters unchanged. Market participants closely followed the statements of BOJ Governor

Irina Manzenko 23:43 2025-03-19 UTC+2

Euro Hits the Ceiling

Bets are now closed, ladies and gentlemen! Many have already played out. The EUR/USD's hesitation to rise following the Bundestag's approval of Friedrich Merz's fiscal stimulus package indicates that this

Marek Petkovich 23:43 2025-03-19 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is showing signs of recovery for the second consecutive day after a recent decline, rebounding from a two-week low around 1.4260. Spot prices have climbed above

Irina Yanina 10:16 2025-03-19 UTC+2

Stock market pays dear cost for Washington's rhetoric

The boomerang effect: what goes around, comes around The US is retreating from globalization, and it is only a matter of time before it faces the consequences. According

Marek Petkovich 09:51 2025-03-19 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.