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With BOJ head Kuroda reaffirming their ultra-easy policy stance, will the yen be in for more losses?

Here’s a potential uptrend play on EUR/JPY.

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Chinese headline CPI up from 2.1% to 2.5% as expected

Chinese producer prices dipped from 6.4% to 6.0% y/y

Japanese upper house elections led to increase in seats for governing LDP party

Japanese core machinery orders sank by 5.6% vs. projected 5.3% decline

Japan’s preliminary machine tool orders slowed from 23.7% to 17.1% y/y

BOJ head Kuroda: BOJ to maintain ultra-loose monetary policy

Macau shut down most businesses and casinos for the week on COVID-19 cases

New COVID-19 variant detected in Shanghai, lockdown fears renewed

French officials: Total cutoff from Russian gas is most likely

Upcoming Potential Catalysts on the Forex Economic Calendar:

BOE Governor Bailey’s speech at 2:15 pm GMT
FOMC member William’s speech at 6:00 pm GMT
New Zealand visitor arrivals data at 10:45 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

There’s not much in the way of top-tier reports to trade later today, so I’m just looking at this simple reversal pattern playing out on EUR/JPY.

The pair already busted through the neckline of its double bottom on the hourly time frame, indicating that a rally is in the works. Price seems to be retesting the broken resistance around 138.50 before heading any higher.

Can it sustain the climb?

Things ain’t lookin’ too good for the Japanese yen so far, as BOJ Governor Kuroda just reaffirmed their plans to stick to an ultra-loose monetary policy.

To top it off, data from the country also highlighted weak spots, with the core machinery orders printing a larger than expected slump and preliminary machine tool orders slowing significantly.

With that, investors might not show much love for the yen, especially since other major economies are facing the prospect of higher interest rates.

Technical indicators are pointing to a continuation of the EUR/JPY slide, though, as the 100 SMA is below the 200 SMA while Stochastic is starting its descent.

I’d probably hold out for the oscillator reaching the oversold region before hopping in a long play!