EUR/JPY Analysis Forecast For 25 May 2015

EUR/JPY Forecast Fundamentals for 25 May 2015

The EUR/JPY closed at 133.825 this week and was up by 8 points as traders wait on the BoJ conference in a few after. The euro gained a few points this morning as the tensions over Greece eased a bit.  The euro was steady at $1.1110 after bouncing 0.2 percent overnight for its first gain in four days. It had hit a three-week low of $1.1062 earlier this week amid Greek debt concerns.

The dollar weakened against rivals for the first time in four sessions on Thursday after softer-than-expected U.S. data dented investors’ outlook for a recovery in the economy over the second quarter.

The euro was also bolstered against the dollar on Thursday by nascent signs of a recovery in euro zone activity, and a rise in German Bund yields which narrowed the spread over U.S. Treasuries. The composite flash PMI for the euro zone fell to 53.4 from 53.9, missing the 53.8 forecast in a Reuters poll. Despite the drop, data compiler Markit said, the euro zone economy is on track to grow 0.4 percent in the current quarter.

“The narrowing of yield spreads over U.S. Treasuries is having an impact on euro to dollar,” said Jeremy Stretch, head of currency strategy at CIBC World Markets.

Part of the reason that euro gains will be limited is a very accommodative monetary policy stance by the European Central Bank. Earlier this week, board member Benoit Coeure said the central bank would accelerate the pace of money printing to buy government bonds over the next two months.

EUR/JPY Technical Analysis Forecast for 25 May 2015

eurjpy forecast 25 may

The up trend in USD Index after US data triggered a pressure on EUR and made EURJPY get a bit down. But as you see on EURJPY chart, still up trend continues over 133.585 which is the bottom level of its up trend. Above this level we expect its rise continues. In order to have a trend change in EUR/JPY, we need a couple of closings below this level in 4 Hrs period. In buy positions you can target 134,75 and 135,30 levels for the short term trading.

Support And Resistance Levels of EUR/JPY For 25 May 2015

Pivot : 133,75

Support : 133,75 – 133,40 – 132,90

Resistance : 134,25 – 135,30 – 135,85

Upcoming Economic Events that you should be monitoring for EUR/JPY in trading forex:

Monday, May 25, 2015

Cur. Event Actual Forecast Previous
United States – Memorial Day
Switzerland – Pentecost Monday
United Kingdom – Late May Bank Holiday
  JPY Exports (YoY) (Apr) 8.5%
  JPY Trade Balance (Apr) 229B

Government Bond Auctions

Date Time Country

May 22 09:03 Sweden Holds bond exchange auction

May 22 10:00 Norway Details bond auction on 27 May

May 25 09:03 Sweden Holds bond exchange auction

May 25 15:30 Italy Announces details of BTP/CCTeu on 28 May

May 26 09:03 Sweden Holds bond exchange auction

May 26 09:10 Italy Auctions CTZ/BTPei

May 26 17:00 US Auctions 2-year notes

May 27 09:15 Norway Holds bond auction

May 27 09:30 Germany Eur 2bn 2.5% Aug 2046 Bund

May 27 09:30 UK Auctions 0.125% 2058 I/L Gilt

May 27 16:00 US Auctions 2-year FRNs

May 27 17:00 US Auctions 5-year notes

May 28 09:10 Italy Auctions BTPs/CCTeus

May 28 09:10 Sweden Holds inflation-linked bond auction

May 28 17:00 US Auctions 7-year notes

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