EUR/JPY Fundamental Analysis October 2, 2012 Forecast

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By FX Empire Analyst - James Hyerczyk
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Demand for higher risk assets will be the driving force in the EUR/JPY market on Tuesday. If traders believe the European economy is improving then look for Euro traders to throw their interest onto the bullish side. Over the past few weeks, money has been flowing out of the higher risk Euro and into the safety of the Japanese Yen. The trading action on Monday suggests that this sentiment may be shifting which means higher prices for the Euro. 

Any talk of improvements in the global economy or the approval of the Spanish bailout plan is likely to underpin the EUR/JPY. Additionally, an intervention by the Japanese government will also send the Euro surging versus the Japanese Yen. 

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