EUR/JPY On Its Way To Reaching New Highs
After falling sharply at the end of last week from 137.80 to a low of 135.91, the EUR/JPY has been rising steadily this week. It hit 137.40 on Tuesday and on Wednesday climbed further to 137.81 early in the day’s trading.
The EUR was hit last week by ECB easing measures but has since been recovering. In Japan there are not any major economic events happening in the next few days so a major change is unlikely.
Furthermore, Japan’s policy makers are hoping that a weaker exchange rate could help boost the economy. Both the central bank and economy chiefs in Japan have said that they are looking for further declines of the currency in order to help increase exports.
As a result, assuming there are no surprises from Europe, it wouldn’t be surprising to see the Euro reach new highs against the Japanese Yen in the coming weeks.