Hi everyone! The EURJPY pair is seeing “boring trading”. On the daily chart you can see a wide range since February. Right now EURJPY has dropped to the lower boundary at 183. A bounce will send the price to the upper boundary at 187.00, following the classic pattern. EURJPY’s rise will be supported by inflation data. On Wednesday eurozone inflation will be published, which could potentially increase the risk of a further rate hike. Meanwhile, the Japanese Tankan index for large manufacturers is expected to come out weaker than forecast. This will ease pressure on the yen, removing the acute need for a rate hike by the Bank of Japan. An additional factor is the shortened U.S. stock trading week. However, before the holiday the U.S. labor market report will be released. This is the only uncertain but strong factor for shaping the EURJPY trend.
