EUR/JPY moved higher in yen terms late last week, trading around 178 as the yen strengthened. In today's trading, notable buy orders were seen in the upper 177s and heavy buying in the mid-176s, while heavy sell orders were observed in the upper 177s and around 181.
EUR/JPY moved lower in yen terms last Friday, with the closing rate remaining tilted toward yen strength against the backdrop of declines in USD/JPY and EUR/USD. Although Japan's Corporate Goods Price Index came in above market expectations, EUR/JPY reportedly showed no particular reaction. Following comments from ECB President Nagel, the view was expressed that the ECB's course will depend on developments in energy prices.
In the order-book chart analysis published today, buy orders were concentrated in the upper 177s, while heavy buy orders were also identified in the mid-176s. On the other side, heavy sell orders were positioned in the upper 177s and around 181, and these were noted as potentially corresponding to perceived support and resistance levels.
Over the past 24 hours, currency-strength and correlation analysis showed that EUR/JPY had strong correlations with USD/JPY, GBP/JPY and AUD/JPY, as well as a correlation with EUR/USD. An inverse correlation with AUD/USD was observed, however.
This week's key events include remarks from the ECB President, the release of economic indicators in Japan, the United States and Europe, and Bank of Japan-related events, all of which have been identified as potential catalysts for EUR/JPY.