The Euro is currently threatening the 185 Yen level as it is resistance, but we are rising during the day.
Interest rates around the world continue to climb and that of course will make the Japanese Yen a little less interesting. And as long as that's the case, you get paid to hold on to this position to the upside, then traders are probably going to prefer the Euro.
Geopolitical Factors and Technical Levels
The overall attitude of markets right now is one that we don't really know what to do because most of what's throwing things around would be headlines coming out of the Middle East which can change at any given moment. President Donald Trump has now given the Iranians another ultimatum for the end of day tomorrow before things start getting ugly again and I think people are going to be watching that as well.
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If we can break above the 185.50 Yen level, that could open up a move towards the 188 Yen level, but keep in mind the Bank of Japan has previously intervened in that region.
Short-term pullbacks I think may make nice buying opportunities extending all the way down to the 182 Yen level in the EUR/JPY pair. I think you've got an environment now where you are buying dips, but we don't know whether or not we are going to truly take off to the upside or if it's going to be more of a bumpy ride back and forth, maybe consolidating a little bit in order to try to kill time waiting for the next move in risk appetite.
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