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A to Z Academy / Forex

EURJPY: Live Euro-Japanese Yen Rate, Chart and Forecast

December 06, 2021 18:12 PM

One of the most popular pairs in the global foreign exchange market is the EURJPY. It accounts for about 3% of all daily transactions and is the seventh most traded currency pair in the market. Investors and traders are interested in the EURJPY currency pair because the high levels of volatility can offer many trading opportunities. 

However, there is much more to these two currencies than meets the eye. The following analysis will detail the specifics of the EURJPY exchange rate. It will also provide valuable tips to help you get started with EURJPY trading and show you how to get started in a few steps.  

What is EURJPY? Overview  

The EURJPY is the 8th most important currency pair of the Forex in terms of traded volume. It pits the European currency against the Japanese yen. It is part of the group of cross currency pairs, which means that it does not contain the dollar.

For EURJPY analysis pair, you need to look at the European and Japanese economic factors in addition to studying the charts. It is also important to note that EURJPY is a relatively volatile currency pair, and with it the potential for gains is significant. However, this volatility also implies a higher risk than other currencies with more minor daily fluctuations.

In practical terms, EURJPY expresses the price of 1 euro in Yen. For example, a EURJPY exchange rate of 150.00 means that 1 euro is worth 150 yen. To follow the price of the Japanese Yen in Euros, we must look at JPY EUR.

Finally, note that EURJPY trading is done through a forex broker. After a quick and easy online account opening and an initial deposit, the broker will provide you with access to a trading platform and many other services.

EURJPY Chart 

Below you will find a real-time EURJPY live chart. It shows the price of 1 EUR to JPY. 

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How to Read the EUR JPY Chart 

With the EURJPY and the currency market in general, the way charts work is slightly different from what we are used to with stocks.

This is because the quote currency can change depending on the pair. For example, in the case of the EURJPY pair, the chart shows the price of 1 € converted into Yen.

The first currency is called the base currency. In the case of EURJPY, this is the Euro. The second currency is called the quote currency. In this case, it is the Yen. 

Please note that many different types of EUR JPY charts are available to visualize price movements in various ways and for various time frames. EURJPY traders can use Bar-chart, Japanese candlestick, line charts, and daily, weekly, and even hourly EURJPY chart. 

EURJPY Historical Data 

In this section, we will look at the historical evolution of the EURJPY exchange rate. We will first detail the major phases of the EURJPY exchange rate over its history before looking at its shorter-term charting and technical context. 

EUR JPY Exchange Rate History 

The historical evolution of the Euro to Yen has been marked by numerous reversals, making the very long-term trend uncertain. 

Indeed, if we look at a monthly EURJPY chart and go back to the 1990s, we can see that the EURJPY has oscillated symmetrically around a pivot point located around 130. During its history, the EURJPY fell to an all-time low of 89.00 in October 2000. The all-time high for the EURJPY was 170.00 in July 2008. 

With the EURJPY currently near its long-term pivot, there is no particular upward or downward bias at this time.  We want to take this opportunity to remind you that EURJPY and Forex, in general, are best used for short-term trading. 

Indeed, an investor who bought the EURJPY in the mid-1990s would have recorded losses on his position by now. On the other hand, many examples of stocks have increased in value tenfold over a few decades. 

EUR JPY Exchange Rate Today 

After bottoming out at around 114 in May 2020, the EURJPY has been trending upwards until it peaks at 134 in June 2021. However, there are currently signs that this trend may be exhausted. Thus, we cannot rule out a bearish reversal of the EURJPY trend. 

But when it comes to EURJPY and currency pairs, it is possible to make money on both bullish and bearish trends just as easily. Indeed, while shorting is not always possible on stocks, EURJPY traders can open buy and sell trades during the same day, depending on the market’s short-term direction. Ultimately, it doesn’t matter if the EURJPY trend is up or down.  

What Influences EURJPY Exchange Rate?  

Below, we will look at the main factors able to push EURJPY price up or down.

ECB and BoJ Monetary Policy 

All long-term economic studies show that the most influential factors on currency pairs, including the EURJPY, are the monetary policies of central banks. In the case of the EURJPY, the focus will be on the ECB’s monetary policy and the BoJ’s monetary policy. 

For the ECB, the market’s rate expectations are the most critical factor. If the market anticipates a rate hike from the ECB, this is a bullish factor for the Euro Yen and vice versa. 

In the case of the BoJ, it is essential to note that the central bank has adopted a zero interest rate policy for several decades. Thus, rather than rate expectations, which remain stable, we will focus on the central bank’s operations in terms of asset purchases, for example.

European and Japanese Economic Statistics  

EURJPY traders should also look at European and Japanese economic indicators. The principle is quite simple: positive surprises in European statistics will be bullish factors for the EURJPY. Similarly, better than expected Japanese statistics will be bullish for the Yen and therefore bearish for EURJPY.

While the dollar-linked currency pairs are subject to a daily stream of US economic indicators, the EURJPY has the advantage of a much less busy calendar. This is because the Eurozone and Japan release a much smaller volume of economic indicators than the US. This specificity reduces the risk of erratic EURJPY price movements. But this also reduce the number of opportunities for EUR/JPY news trading, when traders try to profit for strong movements following economic indicators releases.

Risk appetite 

The fact that EUR JPY pits the Euro against the yen calls for some interesting clarification. The Euro is considered a risk currency that benefits from market euphoria and is penalized by periods of doubt. Conversely, the Yen is regarded as a safe haven that benefits from periods of market uncertainty and is sometimes penalized when optimism prevails.

Thus, the EUR/JPY is an ideal trading instrument for investors who wish to trade on market sentiment. The Euro to Yen is likely to rise during periods of market optimism, as the Euro will benefit while the Yen will be penalized. Conversely, periods of doubt will strengthen the Yen and push the Euro down, causing the EURJPY to fall. 

EUR JPY Forecast and Predictions 

Below, we will look at the EURJPY forecast, especially for the year 2022. However, we remind you that EURJPY trading is mainly for the short term. From studying the long-term evolution of the EURJPY, investment other than for the short term would make little sense.  

Forecast Site 

EUR JPY Forecast 2022 

Trading Economics  138.8 
LongForecast.com  132.0 
Panda Forecast  134.0 
Wallet Investor  132.0 

 As you can see, these EUR/JPY forecasts are pretty disparate, which confirms the rather unpredictable nature of the EURJPY in the medium to long term. However, it is one of the most exciting currency pairs for short-term trading. 

Why Trade EURJPY Today?  

In this section, we will list the main advantages of EURJPY trading. 

  • Volatility:  The EUR/JPY pair has high levels of volatility. As a result, daily movements are wide and significant gains can be made. 
  • Relative Predictability: While some currency pairs are known for their misleading signals, the direction of the EUR/JPY is often more predictable. As a result, signals and reversals in the EUR/JPY may be easier to address and  the EURJPY price action is more fluid than that of the major pairs. Cross pairs develop stronger trends compared to major currency pairs.  
  • Competitive Spreads:  You will also find that this currency pair has relatively low spreads at most brokers, reducing the trading cost.
  • Fewer negative surprises: US dollar based currencies are subject to price spikes due to the many economic statistics released each week. EURJPY can give you the advantage of minimizing these periods of erratic exchange rate movement. This also reduce the opportunities for EURJPY news trading.

Where Can I Invest in the EUR JPY Pair?  

For many reasons, ZFX is one of the best online brokers to trade EUR to JPY.  ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many technical analysis and automated trading advantages. 

Also, as you can see by yourself with a demo account, the spread for EUR JPY is usually lower than 1 pip. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities, free educational resources, high security and many more benefits. 

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How to Trade EURJPY Now 

Trading EUR JPY through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes. All you have to do is follow these steps. 

1 – Register with ZFX 

For this first step, go to the ZFX broker’s website, and click on the “open an account” button. You will then have to fill in a registration form your phone number, which will be verified by SMS. 

Trade Walmart - Step 1

Then, click on “Next” at the bottom of the page .Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform. 

MT4 Login to trade EURJPY

2 – Make your first deposit 

To do this, you will need to click on the “make a deposit” button on the screen that is displayed immediately after registration. You will then be asked to choose a payment method. Let’s take Mastercard as an example: 

trade Facebook stock with ZFX - Step 3

On this screen, indicate the deposit amount and then click on “Confirm Deposit”. You will then be asked for your credit card information before the final validation of the payment. 

3 – Account verification 

Finally, proceed with the account verification by sending supporting documents. 

trade Facebook shares with ZFX - Step 4

As shown in the image above, you need to upload the documents directly to the ZFX website. 

4 – Trade EUR JPY 

Once your documents are validated, you can trade EUR JPY. To do so, install ZFX MT4 on your device and login using that ZFX sent to you. You can then access MT4 and start trading EURJPY. 

Tips for EURJPY Beginner Traders 

Let’s now look at a few final tips to help you approach EUR JPY trading with the best of luck. 

Educate yourself about trading 

The first piece of advice we would like to give you is about training. If you don’t have the necessary background knowledge, it won’t be easy to succeed in trading. Moreover, practicing Euro Yen trading requires mastering several disciplines: technical analysis, fundamental analysis, risk management… EURJPY traders must integrate all of this knowledge into a consistent trading method. There are many free resources on the internet to educate yourself about EURJPY trading, as well as books and trading courses.

Choosing a Serious Broker 

We mentioned earlier how important the choice of a broker is. Thus, you should check that the brokers you are interested in are regulated. Regulation ensures the broker is reputable and follows good management rules. Also make sure the broker’s trading platform fits your needs. The easiest way to do this is to test it with a demo trading account, like the one offered by ZFX.

Keeping a EURJPY Trading Journal 

In practical terms, a trading journal is a document that records all of your trades. It should include the date and time of your transactions, the asset involved, the direction of the trade, the signals used to enter the position, the stop and limit levels, and the reasons for exiting the trade. This will allow you to analyze your trades by identifying winning and losing patterns. This way, you’ll see what works and try to avoid what doesn’t to improve your trading results. 

Bottom Line: Is EUR JPY a Good Investment Now? 

EUR JPY trading has many advantages that will appeal to many traders. However, it is still a trading instrument that is mostly reserved for the short term. But if you are interested in active trading, EUR/JPY trading is something you should consider. This is because the pair has some definite advantages over other currency pairs and other asset classes. 

If you want to start profiting from EUR JPY trading, you’ll need to open an account with a forex broker. In this regard, ZFX is amongst the best brokers for trading EURJPY. Indeed, it offers the MT4 platform, has a particularly low EURJPY spread, in addition to other strong points. 

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