The Euro is expected to weaken against the Japanese Yen in the near future. This is due to a lack of positive global economic outlook, which is generally when this pair strengthens. The Russia-Ukraine situation has proven tumultuous and, along with Europe’s stagnant economy due to near-zero inflation rates, has caused the Euro to soften against its more conservative, low-yielding Asian counter-currency.
The outlook for EUR/JPY is bearish and we’ll have to wait until ECB’s actions to spur growth, which ECB President Mario Draghi implied would likely come in June, for any potential rebound.
The Trade: Short EUR/JPY @ 139.00
Stop-loss at 139.80
Target 1: 138.80
Target 2: 138.60
Once Target 2 gets filled, move stop-loss to breakeven, 139.00.
Target 3: 138.40
Target 4: 138.20
This article was written by Kyle Sheahan, an associate at KeeneOnTheMarket.com.
e: Kyle@keeneonthemarket.com