I am keeping a close eye on a bearish prize for EUR/JPY in 2025. As we look ahead to the future, there are several factors that point towards a bearish outlook for this currency pair.
One of the main reasons for this bearish sentiment is the current economic situation in both the Eurozone and Japan. The Eurozone has been facing challenges with its economic growth, while Japan has been struggling with deflation and a shrinking population. These factors are likely to put pressure on both the euro and the yen, leading to a weaker EUR/JPY exchange rate.
Additionally, the ongoing trade tensions between the United States and China could also have a negative impact on the euro and the yen. Both currencies are considered safe-haven assets, so any escalation in trade conflicts could lead to an increase in demand for these currencies, causing their value to appreciate.
Furthermore, the European Central Bank and the Bank of Japan are both likely to maintain their accommodative monetary policies in the coming years. This could lead to lower interest rates in the Eurozone and Japan, making their currencies less attractive to investors.
Overall, the combination of economic challenges, trade tensions, and accommodative monetary policies point towards a bearish outlook for EUR/JPY in 2025. It will be important to closely monitor these factors in the coming years to see how they will impact the exchange rate between the euro and the yen.