Seasonal data points to EUR/JPY gains in June
June 6 (Reuters) -History shows that the euro usually climbs against the yen in June and this trend will likely persist in 2024.
A study of EUR/JPY's seasonal performance for each June since 2000 shows it has posted a positive return in 16 of the last 24 years, highlighting an underlying structural bullish bias. Seasonality should not be considered in isolation, but when combined with other factors it can be a useful tool.
The euro has firmedahead of the European Central Bank's rate decision. As Bank of Japan rates are expected to remain below those of the ECB throughout 2024, that should continue to boost EUR/JPY. The 30- and 60-day correlations between USD/JPY and EUR/JPY are both high, meaning USD/JPY will likely also climb.
EUR/JPY's bull cycle remains intact as fourteen-week momentum has been positive since early March, reinforcing the overall bullish bias. There is scope for the cross to eventually break above the 171.60 all-time high, posted recently.
For more click on FXBUZ
Weekly Chart: https://tmsnrt.rs/3VaO0xk
Correlation Chart: https://tmsnrt.rs/4bKo5Uf
(Martin Miller is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
