EUR/JPY Soars as Carry Trade Continues Unabated

EUR/JPY is experiencing a surge in buying activity as the carry trade continues to gain momentum. According to Christopher Lewis, a technical analyst and market commentator at DailyForex, the Bank of Japan's interventions have slowed down the destruction of the Japanese yen but ultimately won't be able to fight the overall momentum.

The reality is that traders believe the Japanese won't lift rates significantly due to the country's massive debt load. This has led to a situation where every time there's a pullback, buyers are willing to purchase the euro over the Japanese yen.

Technical analysis suggests that the 185 yen level will likely act as support, with the 50-day EMA right at this level. If the market breaks below this, it may head towards the 200-day EMA near 182.60. To the upside, breaking above 187.50 could be a bullish sign.

Christopher Lewis is bullish on EUR/JPY and has expressed his lack of interest in shorting the pair. He advises traders to look for short-term dips as buying opportunities.