EUR/JPY sets a late high for the week above 163.60 in Friday risk rally

The EUR/JPY followed the Friday technical rally into a new high for the week.
The Euro pulled out of an early dip in the week, closing higher for three straight days.
Japan inflation ticked higher on Friday, next week has Eurozone inflation in the barrel.

Joshua Gibson FXStreet

The EUR/JPY rose for the third straight trading day to chalk in a new high for the week above 163.60.

Broader markets caught a rally across the board for Friday as risk sentiment improved to close out the trading week. The Euro (EUR) caught a rise against the Japanese Yen (JPY) as risk bids buoyed assets across the board, and the Yen got pinned down by softer-than-expected National Consumer Price Index (CPI) numbers.

Japan's National CPI ticked higher for the year into October, battering the Bank of Japan's (BoJ) ongoing concerns about Japanese inflation falling too fast, too soon.

The BoJ remains concerned that Japanese price growth will eventually slump below the central bank's 2% target, but National Japanese CPI, both headline and core (excluding fresh food prices) accelerated for the annualized period into October.

National CPI printed at 3.3%, over and above September's 3%, while Nation CPI core-core (excluding both fresh food and energy prices) decreased from 4.2% top 4.0% compared to National Core CPI also rose from 2.8% to 2.9%.

With the BoJ firmly entrenched in its hyper-easy monetary policy stance, the JPY is set to take a long battering against the broader FX marketspace.

EUR/JPY Technical Outlook

The Euro remains firmly bullish against the Japanese Yen, trading into a 15-year high last week and remaining bid into the top end near 163.20.

The EUR/JPY is up over 26% against the Yen from 2023's lows at 137.38, and despite a rough consolidation period through the third quarter, remains bullish after climbing from November's lows near 159.00.

The nearest technical support is sitting at the 50-day Simple Moving Average (SMA) rising into 160.00, with the 200-day SMA trading far below price action just north of 153.00.

EUR/JPY Daily Chart

EUR/JPY Technical Levels

EUR/JPY

Overview
Today last price	163.63
Today Daily Change	0.52
Today Daily Change %	0.32
Today daily open	163.11

Trends
Daily SMA20	161.5
Daily SMA50	159.29
Daily SMA100	158.24
Daily SMA200	153.13

Levels
Previous Daily High	163.2
Previous Daily Low	162.44
Previous Weekly High	164.31
Previous Weekly Low	161.54
Previous Monthly High	160.85
Previous Monthly Low	154.39
Daily Fibonacci 38.2%	162.91
Daily Fibonacci 61.8%	162.73
Daily Pivot Point S1	162.64
Daily Pivot Point S2	162.16
Daily Pivot Point S3	161.88
Daily Pivot Point R1	163.39
Daily Pivot Point R2	163.67
Daily Pivot Point R3	164.15

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.