EURJPY is a currency pair from the cross-rates category, which consists of the official payment unit of the Eurozone, the euro (EUR), and the national currency of Japan, the yen (JPY).
The Euro is the official currency of most member states of the European Union and the second most traded currency in the world after the US dollar. Since the euro, or the single European currency, reflects the state of the economy of all countries in the Eurozone, its exchange rate is influenced by the financial and political situation in each of these states. Sudden changes in the performance of one or more EU member states can significantly affect the euro.
The yen is the currency of Japan and one of the world's major reserve currencies. Japan is one of the most highly developed countries, whose population is characterized by a high level of urbanization. One of the most serious problems of the Japanese economy, associated with the peculiarities of the geographical location, is the extreme scarcity of natural resources. Therefore, Japan's economy is largely dependent on imported raw materials. Modern Japan is focused on the foreign market. The country's economy can be called export-oriented. The main trading partners are the United States and Western European countries, so the crisis in these countries may lead to various economic problems in Japan, including the depreciation of the national currency.
The high liquidity and volatility determine the attractiveness of the EURJPY pair for traders and investors. Due to such fundamental factors as changes in the monetary policy of the ECB and the Bank of Japan, the release of data on GDP, inflation and the labor market in Japan and the Eurozone, volatility almost always increases. EURJPY has a generally recognized status as a safe-haven currency. The interest of investors in the yen grows significantly during periods of uncertainty in the financial markets. The dynamics of changes in EURJPY prices are characterized by long-term trends, which are favorable for implementing trend strategies using technical tools (indicators and oscillators).
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
