EUR/JPY. Analysis and Forecast

[Ben Graham]

The EUR/JPY pair is consolidating after six days of gains. At the moment, spot prices are trading slightly below the psychological level of 180.00 and appear ready for further growth amid prevailing bearish sentiment toward the Japanese yen.

Earlier this week, Japan's Prime Minister Sanae Takaichi urged the Bank of Japan to coordinate monetary policy more closely, emphasizing a preference for maintaining low interest rates. This move heightens uncertainty regarding the future tightening path of the Bank of Japan—a key factor behind the yen's weakness and a major driver of the EUR/JPY pair's dynamics.

At the same time, the euro is receiving support from expectations that the European Central Bank will end its rate-cutting cycle. Economists believe that the ECB will keep the deposit rate unchanged this year and does not plan to adjust it until the end of next year. This sentiment provides momentum for the continued rise of the EUR/JPY cross, reinforcing the likelihood of maintaining the weekly uptrend and breaking above the 180.00 level.

Today, for better trading opportunities, attention should be paid to the release of eurozone GDP data for the third quarter.

From a technical standpoint, the oscillators on the daily chart are positive but nearing overbought territory, suggesting some consolidation before the next attempt to break through the round level of 180.00.

The material has been provided by InstaForex Company - www.instaforex.com