Day by day Foreign exchange Information and Watchlist: EUR/JPY

The Financial institution of Japan (BOJ) is up within the subsequent few buying and selling classes!

Will the central financial institution’s projections and coverage choices push the yen greater in opposition to its counterparts?

Earlier than shifting on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Verify them out earlier than you place your first trades at present!

And now for the headlines that rocked the markets within the final trading sessions:

Japan’s core equipment orders up by 3.4% vs. 1.4% anticipated in November

U.Ok. property asking costs improve 7.6% from a 12 months earlier – the quickest tempo since 2016

China GDP development slows from 4.9% to 4.0% in This fall amid COVID, property woes

China posts document commerce surplus in Dec ($94.46B) and 2021 ($676.43B) on sturdy exports

China cuts one-year medium-term lending facility (MLF) price from 2.95% to 2.85% and 7-day reverse repo open market operation price from 2.20% to 2.10%, the primary price cuts since April 2020

China injects 200B yuan price of medium-term money into the system

Japan weighs state of quasi-emergency for Tokyo

U.S. markets out on Martin Luther King Day vacation
Canada’s manufacturing gross sales at 1:30 pm GMT
BOC’s enterprise outlook survey at 3:30 pm GMT
BOJ’s coverage announcement in the course of the Asian session (Jan 18)
U.Ok.’s common earnings at 7:00 am GMT (Jan 18)

In the event you’re not aware of the foreign exchange market’s essential buying and selling classes, take a look at our Forex Market Hours software.

What to Watch: EUR/JPY

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Foreign exchange Chart

I don’t know in the event you’ve observed however EUR/JPY has been on a sluggish and regular downtrend for the reason that begin of the 12 months.

EUR/JPY’s 1-hour chart bought extra attention-grabbing at present when the pair hit the 130.60 zone that traces up with the channel resistance AND the 100 and 200 easy shifting averages.

Merchants who’re taking a look at EUR/JPY’s pattern will wish to know what the BOJ has to say in tomorrow’s coverage announcement.

Whereas nobody is anticipating coverage adjustments from the BOJ, they’re anticipated to drop greater development AND inflation forecasts.

Will the optimistic numbers translate to a much less dovish coverage plan?

Any whisper of rate of interest hikes might drag EUR/JPY from the channel resistance all the way down to earlier assist ranges like 130.30 or 129.75.

If BOJ members disappoint, nonetheless, or if we see rounds of risk-taking and anti-safe-haven sentiment within the markets, then EUR/JPY might head for the 131.50 earlier highs if not new 2022 highs.

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