The wave of EUR buying continued over the summer, taking EUR/JPY back to levels last seen at the start of 2019 before profit-taking emerged. The pair is trading just above the 126.00 mark and economists at Rabobank forecast EUR/JPY dipping to 123 in three-months.
Key quotes
“Even though momentum behind the EUR has remained strong in recent months we see risk of additional corrective pullbacks. Not only are there increased concerns regarding Covid-19 in the EU but the Eurozone still has enormous economic woes to overcome.”
“Under the weight of rising unemployment levels, it is likely the political challenges will re-emerge.”
“We see scope for a EUR/JPY dip to 123 on a three-month view.”
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