EUR/JPY returns above 185.00, Yen weakens ahead of Japan’s elections

💡 DMK Insight

The EUR/JPY is back in bullish territory, and here’s why that matters right now: With the pair currently trading at 185.25, the recent bounce from session lows of 184.40 indicates renewed buying interest. This shift comes as the JPY weakens ahead of Japan’s snap elections, which could lead to increased volatility. Traders should be aware that any significant political shifts could impact monetary policy expectations, further influencing the JPY’s strength. If the EUR/JPY can maintain momentum above 185.00, it may target higher resistance levels, potentially around 186.00. Conversely, a drop below 184.40 could signal a reversal, prompting traders to reassess their positions. It’s also worth noting that this bullish trend could ripple into other currency pairs, particularly those involving the JPY, such as AUD/JPY or GBP/JPY. As the elections approach, keep an eye on market sentiment and any news that could sway the JPY’s performance. Watch for key economic indicators from the Eurozone that might bolster the EUR further, as they could provide additional fuel for this rally.