Euro-yen retests record highsEuro/Japanese YenFX:EURJPYMichael_Stark_ExnessThe euro has strengthened recently against various other major currencies as traders interpreted the ECB’s latest meeting last week as signalling the end of the cycle of loosening. While the BoJ is likely to continue hiking later this year – probably the next hike coming in October – there has been some focus on recently weaker trade data from Japan. The European job market on the whole seems also to be relatively strong compared to some other major economies such as the USA. It’s very unlikely that the difference in rates for EURJPY will go much below 1% for many months. It’s questionable whether euro-yen’s uptrend has ended and morphed into a sideways trend because there haven’t been any lower lows since the peak in late July and the price remains close to the all-time record high around ¥174. However, immediate strong continuation upward is also in doubt given a clear though not extremely strong overbought signal from the slow stochastic and Bollinger Bands. The next resistance above the all-time high is hard to pinpoint. The obvious candidate for support in the short to medium term is ¥170 as a round number and the source of renewed but weaker demand for buying in early August. More than dollar-yen, the next movements for euro-yen probably depend heavily on upcoming Japanese inflation and the BoJ’s meeting. This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.