EUR / JPY Technical Analysis: The future of climate change crisis

For the past two weeks, the EUR / JPY currency has been traded amid concerns about a slowdown in the Eurozone economy. This comes at a time when the European Central Bank has agreed for the first time to increase interest rates in many years. The EUR/JPY is currently trading at the 136.86 support level, which was sitting around the 138.50 level at the beginning of this week’s trading session.

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The yen is a popular currency in times of turmoil.

In the past, many European policymakers have spoken of the future of increasing interest rates and their size, as well as responding to action. , While the Eurozone is facing an unlikely setback due to the ongoing Russo-Ukrainian war. European Central Bank Governing Council spokesman Yanis Stournaras has called for a new tool to keep the credit market turbulent at sea, as they should not use higher interest rates if they are strong enough to convince investors. Do not try them.

In an interview with Bloomberg TV on Saturday in Aix-en-Provence, France, Stournaras said there was a “very good discussion” about the game, expressing confidence in a “consensual and effective solution” and with the expectation that markets will surprise “on the positive side”. “I think there’s a lot of truth to the idea that if we convince the markets that this is going to be a strong tool, we probably don’t have to,” the Bank of Greece governor added. And “we’ll have it on the board. This is a good example. In the face of the expansion, European Central Bank officials are preparing for the nature of the interest rate hike to prove There are no negative consequences to the stable markets for the fragile parts of the Eurozone.And since the Italian government’s fiscal spike jumped in June, they have delayed work on a so-called anti-fragmentation tool. , which developers now call the Transport Protection Mechanism.

Sturnaras’ remarks recalled the European Central Bank’s Explicit Monetary Transactions program that followed former President Mario Draghi’s famous promise to do “everything” to keep the Eurozone in the midst of a crisis. the government. In this case, his words were enough not to use OMT.

And while officials aren’t sure the new coach will be ready for their decision on July 21, according to those familiar with it, Stournaras is much better off. But he declined to go into details about the conditions in which eurozone members would need to meet in order to help.

He said it was necessary, however, that there were no general regulations in the European Union.

The official said the European Central Bank plans to increase its treasury by a quarter of this next month. With a bigger day for the meeting to come, in September, Stournaras said, “We’re going to see what the data has to say about inflation first and employment first.” He sees inflation starting to slow by the end of the year and close to the median target of 2% in 2024. It is now more than four times that level. “I can’t tell you where to go up because it’s about external things that can’t be measured by visuals,” Sturnaras added, and “maybe it’s about the geopolitical thinking. “

The rise in prices will be accompanied by a slowdown in the 19 -eurozone economy – an economy that could be in recession. Hopes are growing for deregulation as Russia’s power could be cut this winter ahead of time. ING said the economy was coming.

The EUR/JPY forecast

On the daily chart, the EUR / JPY is in a bearish channel line, and while it is currently standing, the bears are more bullish and their drivers are continuing. the future for the eurozone economy due to Russian pressure. Cut gas from block areas. The closest support levels for the current trend are 137.70, 136.80 and 135.00. On the other hand, the bulls will not return to power without moving above the 140.00 psychological resistance and now I want to buy EURJPY from any bullish level.

EUR/JPY

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