FXStreet (Córdoba) – Jane Foley, Senior Currency Strategist at Rabobank, noted that they expect the EUR/JPY pair to stabilize in the 132 – 135 area in the coming months.
Key quotes:
“In common with the BoJ, the ECB is implementing an extremely accommodative monetary policy. At the start of this year, heightened levels of risk appetite led investors to short the EUR in favour of higher yielding currencies.”
“However, concerns about a Grexit early in the summer, and then the bursting of the Chinese stock market bubble and devaluation of the CNY, created a wave of short-covering in the euro as well as the Japanese yen. “
“The yen and the euro have been reasonably well correlated over the past few months. We expect EUR/JPY to stabilise in the 132-135 area in the coming months.”
(Market News Provided by FXstreet)