EURJPY rebounds despite political risk in France.
“EU bound to raise interest rates as soaring inflation erodes savings and jeopardizing corporate profits.”
Traders shifted their focus towards euro despite heightened political risk in France after President Emmanuel Macron failed to secure an absolute majority in the parliamentary election. Yesterday, European Central Bank President Christine Lagarde reemphasized to raise interest rates by twice this summer to combat rising inflation. For the time being, investors will wait for testimony from Fed Chair Jerome Powell to attain further confirmation.
Quick recap on EURJPY
EURJPY remains tilted towards the upside as it rebounds from the lower level.
EURJPY Weekly Technical Analysis
In weekly perspective, MACD continues to illustrate increasing bullish momentum, a sign for a continuation of overall bullish bias.
EURJPY Daily Technical Analysis
From daily perspective, the pair illustrate strong bullish support from the downside. EURJPY is expected to retest near previous high near 143.90.
ORDER: BUY STOP
STOP LOSS: 142.70
Target 1: 146.50
Target 2: 148.10
ZFX Analyst’s Comment
Japanese yen experienced extended weakness since last week after Bank of Japan decided to maintain loose monetary policy. Widening divergence in between BoJ and other major central bank may provide further support for the pair in the mid to long run.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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