EURJPY November 13th, 2023
EUR/JPY is currently trading at 163.1, and there are a number of factors that suggest that the pair could continue to move higher in the near term.
First, the ZEW Economic Sentiment Index for Germany is expected to improve from -1.1 to 5. This would be a significant improvement, and it would suggest that the German economy is on track to continue to grow in the coming months. A stronger German economy would likely be supportive of the euro, as it would make German goods and services more competitive in international markets.
Second, the Japanese GDP growth rate is expected to slow from 1.2% to -0.1% in the third quarter of 2023. This would be a disappointing result, and it would likely weigh on the Japanese yen. A weaker yen would make Japanese imports more expensive, and it would also make Japanese exports less competitive. This would likely be supportive of the euro, as it would make European goods and services more affordable in Japan.
Third, the Japanese balance of trade is expected to deteriorate from 72.1 billion yen to -735.7 billion yen in September 2023. This would be a significant decline, and it would likely put further downward pressure on the Japanese yen. A weaker yen would be supportive of the euro, as it would make European goods and services more affordable in Japan.
Overall, the combination of these factors suggests that the EUR/JPY pair could continue to move higher in the near term. Traders who are looking to buy the pair could look to do so at current levels or on a break above the 170 level.
First, the ZEW Economic Sentiment Index for Germany is expected to improve from -1.1 to 5. This would be a significant improvement, and it would suggest that the German economy is on track to continue to grow in the coming months. A stronger German economy would likely be supportive of the euro, as it would make German goods and services more competitive in international markets.
Second, the Japanese GDP growth rate is expected to slow from 1.2% to -0.1% in the third quarter of 2023. This would be a disappointing result, and it would likely weigh on the Japanese yen. A weaker yen would make Japanese imports more expensive, and it would also make Japanese exports less competitive. This would likely be supportive of the euro, as it would make European goods and services more affordable in Japan.
Third, the Japanese balance of trade is expected to deteriorate from 72.1 billion yen to -735.7 billion yen in September 2023. This would be a significant decline, and it would likely put further downward pressure on the Japanese yen. A weaker yen would be supportive of the euro, as it would make European goods and services more affordable in Japan.
Overall, the combination of these factors suggests that the EUR/JPY pair could continue to move higher in the near term. Traders who are looking to buy the pair could look to do so at current levels or on a break above the 170 level.
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