Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/JPY Forecast: October 2019

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The EUR/JPY pair has been volatile during the month of September, going as low as ¥116, and as high as ¥120. We are finishing the month right around the ¥118 level, so essentially it is an unchanged month. That will make this month of October very interesting, because there seems to be a lot of push and pull when it comes to this currency pair.

When it comes to the Euro, you should start to look at the fact that we are heading into a recession for much of the European Union. Beyond that, the other part of this pair is the Japanese yen so that of course has a major influence on the way it behaves. The Japanese yen is considered to be a “safety currency”, so with that in mind it’s likely that we will continue to see a bit of a push towards that direction overall, as there are a whole plethora of problems out there that could pop up at any given moment. Some of them include the US/China trade relations, Brexit, potential recession in Germany, recession in Italy, geopolitical tensions between the United States and Iran, global growth slowing down, and of course a whole host of other issues out there that could have a bit of a “risk off” move coming back into play.

If the market does rally from here, it’s probably going to be somewhat difficult to break above the ¥120 level. In fact, if you drill down to the shorter-term charts you can identify a 100 PIP range of resistance so it’s really not until we take out the ¥121 level that the market starts to look impressive to the upside. We are much more likely to see this market reach towards the ¥116 level this month than ¥121. Short-term selling of the rallies probably continues to be the mantra for most traders here, so therefore it’s likely that the “risk off” trade will continue to be a major player in the marketplace. Granted, we have broken down rather significantly over the last several months, but there’s nothing on this chart that suggests any of this is going to change anytime soon. With that, I remain bearish but I also recognize we may see a short-term pop in this market that offers more value in the Japanese yen. The Euro would need some type of major turnaround over all to influence this pair.

eurjpy

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews