EUR/JPY target extended from 142 to 146
In July 2016, in an article named, “FxWirePro: Yen may retrace to 130 per euro”, available at http://www.econotimes.com/FxWirePro-Yen-may-retrace-to-130-per-euro-235397, we suggested that the yen might weaken against the euro to as low as 130 per euro from the then current rate of 116 per euro.
The call was based on the view that BoJ will remain dovish and it will be one of the last central banks to withdraw its record easing monetary stimulus and the diminishing political risk premium in Europe after the win of Emmanuel Macron in the French election and the change in monetary policy stance of the European Central Bank.
As the EUR/JPY reached our stipulated target in August 2017, in a subsequent call review in July, which is available https://www.econotimes.com/FxWirePro-Euro-reaches-target-at-130-against-yen-target-extended-to-142-823730 we extended our target from 130 to 142.
As of now, the EUR/JPY pair is trading at 137.2 and we would like to urge our readers to maintain long positions. The call is already 2100 pips in the money. In this review, we would also like to extend our final target for the pair from 142 to 146, as we sense there have been no major changes to the above-mentioned fundamentals.
Source: FXWire Commentary