EURO vs Japanese Yen
EUR JPY is one of the most liquid cross rates with regard to US dollar, where the influence of US dollar on yen is stronger then that on euro. Also, forex EUR JPY pair is very politicized and depends on many fundamental factors. This instrument attracts with its high volatility, which allows to make profit from short-term operations.
EUR JPY currency pair is characterized by stable mid-term trends. The Japanese economy is focused on exports, the main consumers are the countries of Eurozone, China, and the USA, which forces Japan to weaken yen rate against the main currencies continuously. The economy of the Eurozone countries is characterized by high development of the domestic market; therefore, ECB conducts less aggressive monetary policy with regard to euro.
The following has strong influence on Euro Japanese yen rate forecast: the main economic indicators of Eurozone, the USA, and Japan (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries, European and American financial regulators; Eurozone's political events, ECB's statements and monetary policy events; Statements made by the Bank of Japan and the Ministry of Finance of Japan, currency interventions of Japanese yen. Demand for Japanese goods on the European market; Prices for energy resources and Asian stock indexes (Hang Seng, KOSPI, Nikkei 225, SET50); European stock market indexes FTSE 100, DAX, CAC 40.
EUR JPY dynamic rate is suitable both for experienced traders and beginners. Monitoring of Euro Japanese yen Forex on-line shows clear technicity of this instrument. Euro Japanese yen pair is considered as highly liquid, especially in the period of European and Asian sessions. Main trading volumes: exchange operations by the Bank of Japan and ECB, Asian investments funds, commercial and option contracts, short-term hedging operations.