EUR/JPY Strategy - Non-U.S. Currencies Extend Rebound, Uncertain Outlook for JPY Bulls

Fundamental Analysis:

Due to weaker-than-expected U.S. PCE inflation data and Federal Reserve officials' statements supporting further rate cuts, the dollar's rally reversed sharply. Non-U.S. currencies, led by the euro, performed relatively strongly. However, investors remain skeptical about whether the Bank of Japan will proceed with further rate hikes. Additionally, the rebound in U.S. stocks partially reflects an improvement in risk sentiment, reducing demand for the yen as a safe haven. This creates dual pressures on the yen.

Technical Analysis:

The 15-minute chart for EUR/JPY shows the price within an upward range, with the potential for price corrections toward a demand zone to accumulate momentum. Long positions can be taken within the demand zone, with stop-losses placed below the lower boundary of the range and targets set at the upper boundary or recent highs.

Recommendation:

Buy at 163.269 or better. Set a stop-loss below 163.136 and aim for a target of 163.401.

Support Level: 163.136 Resistance Level: 163.472

The above content is for reference only and does not represent the platform's stance. Maintain your own judgment and implement appropriate risk controls.