EUR/JPY Fundamental Analysis April 22, 2014 Forecast

The EUR/JPY rose after a report showed Japan’s trade deficit widened more than forecast last month. Japan’s trade deficit widened to 1.45 trillion yen in March, from 802.5 billion yen the previous month. According to Bloomberg News, the median estimate of analysts surveyed was a 1.1 trillion yen shortfall.

A key 50% level at 141.77 was reached during the session. The rally may begin to slow down since this price level is a natural profit-taking point. Investors should watch it closely for signs of selling pressure. Taking it out with conviction could set up an eventual rally to 142.17. This move is likely to take place if investors begin to increase bets for more easing from the Bank of Japan on April 30.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our  weekly reports and we provide daily updates and outlooks.