The EUR/JPY signal today is indicating a long-term bullish trend that is expected to continue. The euro has been rallying against the Japanese yen, with the potential to reach levels around ¥172 to ¥175. Short-term pullbacks in the market are seen as buying opportunities, as the interest rate differential continues to attract investors.
Technical analysis shows a very bullish outlook for this pair, with a massive hammer formation on Thursday indicating strong buying interest. The euro’s overall rally also adds to the appeal of this trade, especially since the Japanese yen is a funding currency.
While the ¥170 level may pose a psychological barrier, the Bank of Japan’s limited ability to influence the market suggests that the trend will continue to favor the euro. The ongoing punishment of the Japanese monetary policy further solidifies this one-way trade scenario. Traders are advised to consider taking advantage of any potential intervention by the Bank of Japan to enter the market at lower levels.