EUR JPY

Divergent monetary policies between the ECB and BOJ alongside trade wars and demand for safety could make things tricky for EUR/JPY bulls in 2025.

Japanese Yen strength has taken a step back in December, and USD/JPY is testing a big spot of support as EUR/JPY tests a key spot of resistance.

JPY strength ran into the December open but since USD/JPY and EUR/JPY set fresh lows last Tuesday, prices have been pulling back.

While the headlines out of Europe have been largely negative, price action in the Euro hasn’t quite matched that pace. EUR/USD continues to push-higher while holding 1.0500 and EUR/JPY has pulled back from the early-week sell-off.

French political chaos grabs headlines, but EUR/JPY and GBP/JPY aren't flinching. Rate differentials are steering the ship. Are morning star patterns signalling a reversal? We break down setups cutting through the noise.

Both USD/JPY and EUR/JPY have sold off over the past week and with the BoJ policy review expected in a couple of weeks, Yen-strength scenarios seem to be gaining steam.

The EUR/JPY outlook is increasingly tuning bearish, but it must continue holding below the 160.00 handle to keep the bears happy. I reckon the pair is heading down to 155.00 in the coming days.

GBPUSD, EURJPY: Inflation indicators between the eurozone and the Japanese economy are due this week, following the jump in UK’s inflation rates next week, adding reversal potential to the dollar’s rally ahead of Trump’s presidency.

The Euro continued it’s Q4 descent against the US Dollar but it’s the recent build of bearish price action in EUR/JPY that’s of interest going into next week.

Against a backdrop of weakening economic data, looming tariffs from the US in 2025 and a struggling Chinese economy (bad for Eurozone exports), the euro outlook remains negative, putting pairs such as the EUR/USD and EUR/JPY into focus – the latter having just formed a bearish technical signal.

EUR/USD has taken a beating so far in Q4 but for the past week and the pair is testing the 1.0500 handle for a second time. For both Euro bears and Yen bulls, EUR/JPY could make for a more attractive argument for directional plays.