Forex
EUR/JPY Bounces Off Key Support Level Amid Return of Buyers
The EUR/JPY pair experienced a decline on Wednesday after breaking below the significant support level of ¥178. However, it appears that buyers have returned to the market.
A hammer formation has emerged in the price action, suggesting that the ¥178 level is likely to continue serving as a floor for the currency pair.
The 181 yen level above has been acting as resistance recently, and Christopher Lewis notes that the interest rate differential continues to favor the European Union. The Japanese economy's massive debt burden makes it difficult to raise rates anytime soon.