Zerologic
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The EUR/JPY pair corrected slightly near the lower band.
Yesterday, the EURJPY currency pair drew a bullish small-body candle with a short shadow wick on the top candle. The price formed a high of 157,252, a low of 156,002, and a close of 156,690. EURJPY has fallen more since February 13 after failing to cross the middle band line. Bollinger bands drawing a descending channel reflect the market more to the downside.
The Japanese yen weakened slightly due to a small correction in the 10-year JGB yield. The asset strengthened as the Japanese Yen (JPY) weakened overall amid a small correction in the 10-year Japanese bond yield. Investors rushed to buy Japanese bonds after Bank of Japan (BOJ) Governor Kazuo Ueda said he could increase the government's bond purchase program if long-term interest rates rise sharply. The 10-year JGB yield fell to nearly 1.41% from 1.45%, the highest level seen in nearly 15 years.
The hope that the BoJ will raise interest rates may be able to maintain the Yen. This hope is increasingly convincing because the Japanese National Consumer Price Index (CPI) data for January were higher than expected.
Today investors will focus on important data releases such as European GDP data which is predicted to be the same as the previous revision of -0.2%.