EUR/JPY remains in a range-bound market today as the yen continues to weaken. Heavy buying in the low 185s and selling in the upper 185s are expected to cap the upside.
EUR/JPY continued trading in a narrow range yesterday despite moving in the direction of a weaker yen, with the closing level only slightly weaker for the yen than the previous day. With USD/JPY and EUR/USD showing little movement, the market as a whole lacked a clear directional bias.
In the technical analysis published today, the order book showed particularly heavy buying in the low 185s, drawing attention to approaches toward the support line. At the same time, heavy selling in the upper 185s was frequently seen as a resistance level. There were also heavy sell orders around 187.
Correlation analysis showing the relationship between EUR/JPY and other currency pairs found that GBP/JPY had the strongest correlation with EUR/JPY over the past 24 hours. USD/JPY and AUD/JPY were correlated, while AUD/USD showed a weak correlation. No inverse correlation was identified.
In the relative strength analysis of the 8 major currencies, the Australian dollar was the strongest and the yen the weakest over the past 24 hours. The yen moved into negative territory mainly overnight, while the euro remained near zero and moved into negative territory from the evening onward.
Today's major Canadian and US economic releases are Canadian GDP, the Chicago Purchasing Managers' Index and the University of Michigan Consumer Sentiment Index. Real-time EUR/JPY charts and order book information are also available for review.