EUR/JPY Higher

EUR/JPY has been in an uptrend since it reached a bottom at 112.59 in the end of October. The pair has been supported by the weakening Japanese Yen and most lately by the happening in the Eurozone. Although the Italian referendum did not pass and prime minister Matteo Renzi is about to leave the post, the Euro was strengthened against all its counterparts.

The initial reaction of the failed referendum yesterday was to sell the Euro with the idea that the Eurozone is headed into deeper recession. However, what we actually experienced was a reaction similar to the one we saw when Trump won the Presidency.

This is one of the beauties of the market. When people see an opportunity to buy low they do it. Yesterday the EUR/JPY reached a low of 118.70 and is now trading at 122.54 with a high of 123.21.

The situation remains very volatile as markets are anticipating the rate decision on 13-14 Dec. This would be one of the most awaited fundamentals of the year.

Chart: EUR/JPY D1