News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/qnQ8Cx0DKv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lIUxpfSem3
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/8kBulRFd6l
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6u52PuzIaY
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/rHDy0XNZjQ
  • (Weekly Outlook) Australian Dollar Outlook: AUD/USD Divergence With Wall Street Risks Continuing #AUD $AUDUSD #Fed #Stocks https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/06/12/Australian-Dollar-Outlook-AUDUSD-Divergence-With-Wall-Street-Risks-Continuing.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/ryxG0fHmzd
  • The US Dollar steadied against most ASEAN currencies this past week. Key support levels remain in play looking at USD/SGD, USD/THB and USD/PHP. USD/IDR may rise with a new trendline. Get your market update from @ddubrovskyFX here:https://t.co/bpr5ZlKIcE https://t.co/0pskmzXZHi
  • EUR/USD has been looking toppy since late May as bearish technical signals played out. But, rising Euro short bets from retail traders hint that the currency may hold its footing. Get your market update from @ddubrovskyFX here:https://t.co/fAZijmQVqh https://t.co/pXICvFE007
Short EUR/JPY - Q2 Top Trading Opportunities

Short EUR/JPY - Q2 Top Trading Opportunities

Martin Essex, MSTA, Analyst

Short EUR/JPY – Euro Suffering From Slow Vaccine Rollout, Yen a Safe Haven Again

Advertisement

Quite how the European Union made such a mess of vaccinating its people against Covid-19 is complicated. Aiming for EU solidarity, the European Commission negotiated on behalf of all the EU countries with the vaccine manufacturers and succeeded in buying the jabs cheaply, holding the drug companies to account and obtaining enough to vaccinate the whole of the EU.

Unfortunately, side effects included delays in delivery, bickering between the EU states and a slower vaccination program than either the US or the UK. The result: a weaker Euro on the likelihood that the EU economy will recover more slowly from the slump caused by the pandemic than other nations and regions. Moreover, that’s a perception that will likely persist for many more months and that, in turn, will likely mean the Euro weakens further.

So the question, if you’re a Euro bear, is which currency to sell it against and, of the many alternatives, the Japanese Yen is one to consider.

EUR/JPY Price Chart, Daily Timeframe (August 3, 2020 – March 24, 2021)

EURJPY, EUR/JPY Price Chart, IG Group

Chart prepared by Martin Essex, created with IG

As the chart above shows, the Euro has been climbing against the Yen for months now; indeed EUR/JPY has been advancing since the start of the pandemic, which is remarkable given that the Yen was once seen as a safe haven. Truth to tell, there has only been one safe haven over the past year and that, of course, has been the US Dollar.

Towards the end of the first quarter, however, there were signs that the Yen was coming back into fashion as one of the go-to currencies for traders seeking havens and that suggests it could well strengthen in the second quarter if the global economic recovery fails to emerge at quite the optimistic rate the markets seem to be expecting.

So, putting together a weak Euro with a stronger Yen, there is plenty of scope for EUR/JPY to weaken if – like me – you think the recovery will be rather bumpier than current market pricing implies.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES