Forex: Euro To Japanese Yen - What Has Affected EUR/JPY?

Asia morning bites - 16.05.2023

EUR/JPY Eases Around 138.00

EUR/JPY eased to around 138.30 after falling to about 137.26 on Wednesday. The pair has been declining since June 28 after failing to break the monthly resistance at 144.30.

Recession?

Growing fears of a recession in Europe pressured the currency pair following a negative statement by the Bank of England (BOE), which implicated that volatility in the oil and raw-material prices may shock the economy. Aside from this, the gas supply strain between Europe and the UK economy is another factor contributing to the downside bias of the currency pair. The UK announced that the country would stop supplying gas to mainland Europe if it hits shortages in the coming months.

Bank Of Japan

In Japan, the Bank of Japan (BOJ) has concerns regarding the underwhelming wage-price concept. Wage prices need to be increased to prevent inflation rates from rising above ideal levels. If inflation rises too high, households would be affected by higher living costs, which is likely to lead to a recession or a housing crisis.

Asia morning bites - 16.05.2023

ICM.COM Market Updates

ICM.com is a UK-based, global, multi-regulated broker, and financial services provider, providing online foreign exchange (FOREX) and Contract for Difference (CFDs) trading solutions as well providing access to most of the world’s stock exchanges via its ICM Securities platform.

ICM’s aim is to provide a safe online trading environment and comprehensive support to all its customers with no compromise on speed, performance, variety of instruments, or price.

The company provides one of the highest levels of insurance in the industry. Client funds are secured in segregated accounts with tier 1 banks and they offer a variety of ways to ensure your funds are always easily accessible. They also have a Civil Liability Insurance Programme that covers up to £5 million.

ICM.com have over 5,000+ products available including currencies (FOREX), Indices, Commodities, precious metals, futures, and cryptocurrencies making them a one-stop-shop for all your trading needs. Its products can be traded via the MetaTrader 4, MetaTrader 5, or cTrader platforms. The company also provides access to all the major stock exchanges globally via its ICM Securities platform.