- EUR/JPY trades with a positive bias for the second straight day amid a weaker JPY.
- A US-Vietnam trade deal boosts investors’ confidence and undermines the JPY.
- BoJ rate hike bets should limit deeper JPY losses and cap the upside for the cross.
The EUR/JPY cross edges higher for the second consecutive day on Thursday and climbs back closer to a nearly one-year high touched earlier this week. Spot prices currently trade around the 169.70-169.75 area, up 0.10% for the day amid a broadly weaker Japanese Yen (JPY).
A trade agreement between the US and Vietnam eased concerns over prolonged trade tensions, which, in turn, boosts investors' appetite for riskier assets. Apart from this, the Bank of Japan's (BoJ) cautious approach to unwinding its long-standing ultra-loose policy undermines the JPY's safe-haven status. This, in turn, is seen acting as a tailwind for the EUR/JPY cross through the early European session.
The shared currency, on the other hand, struggles to lure buyers amid the European Central Bank's (ECB) relatively dovish tilt and a modest US Dollar (USD) strength. ECB policymakers reinforced that the central bank is nearing the end of its easing cycle, although further rate cuts cannot be ruled out. This marks a significant divergence in comparison to hawkish BoJ expectations.
BoJ Board Member Hajime Takata said on Thursday that the central bank is currently only pausing its policy rate hike cycle and it should continue to make a gear shift after a certain period of wait and see. This comes on top of signs of broadening inflation in Japan and leaves the door open for additional interest rate hikes by the BoJ, which should limit the JPY losses and cap the EUR/JPY cross.
Traders now look forward to the release of the final Services PMI prints from the Eurozone. The data, however, might do little to influence the EUR, warranting some caution before placing fresh bullish bets around the EUR/JPY cross and positioning for an extension of the recent strong move up witnessed over the past month or so.
Japanese Yen PRICE Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | -0.11% | 0.09% | 0.03% | 0.15% | 0.27% | -0.08% | |
| EUR | -0.03% | -0.14% | 0.07% | -0.00% | 0.13% | 0.20% | -0.08% | |
| GBP | 0.11% | 0.14% | 0.18% | 0.15% | 0.25% | 0.33% | -0.14% | |
| JPY | -0.09% | -0.07% | -0.18% | -0.04% | 0.08% | 0.12% | -0.27% | |
| CAD | -0.03% | 0.00% | -0.15% | 0.04% | 0.11% | 0.19% | -0.08% | |
| AUD | -0.15% | -0.13% | -0.25% | -0.08% | -0.11% | -0.09% | -0.39% | |
| NZD | -0.27% | -0.20% | -0.33% | -0.12% | -0.19% | 0.09% | -0.48% | |
| CHF | 0.08% | 0.08% | 0.14% | 0.27% | 0.08% | 0.39% | 0.48% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
作者：Haresh Menghani，文章来源FXStreet，版权归原作者所有，如有侵权请联系本人删除。
风险提示：以上内容仅代表作者或嘉宾的观点，不代表 FOLLOWME 的任何观点及立场，且不代表 FOLLOWME 同意其说法或描述，也不构成任何投资建议。对于访问者根据 FOLLOWME 社区提供的信息所做出的一切行为，除非另有明确的书面承诺文件，否则本社区不承担任何形式的责任。
FOLLOWME 交易社区网址: www.followme.ceo
加载失败()