EURJPY Marks Fourth Year Higher

The EURJPY currency pair embarked on a compelling trajectory in 2023, marking its fourth consecutive year of gains with a substantial nearly 11% surge.

Behind this surge lies the compelling interrelation between the Euro and the Yen, largely propelled by the diverging paths of their respective central banks’ interest rates. The European Central Bank (ECB) raised rates to their highest in 15 years, a stark contrast to the Bank of Japan’s (BoJ) ultraloose monetary policy, maintaining rates at -0.1%.

This interest rate differential acted as a magnetic force, likely drawing capital toward the Euro Area due to its higher yields at the expense of the Yen’s allure. Now, all eyes turn to the Euro Area’s upcoming inflation data, serving as a compass for traders gauging potential shifts in ECB policies, thus sculpting the future path of the EURJPY pair.


In 2023, the EURJPY pair witnessed a battle of forces, with the Yen rallying to recover some lost ground against the Euro, notably paring losses despite yielding ground earlier in the year. The final quarter saw the pair’s descent, marking a downtrend that drove it below the 100-day moving average on the daily chart—a significant technical shift.

Amidst this decline, a key support level emerged at 153.115, with oversold RSI conditions prevailing, sparking a temporary upturn. This upswing found resistance at the 50% Fibonacci Retracement level around 158.568, signalling a barrier within the broader downtrend. Subsequent downside momentum reaffirmed this level as resistance, indicating a potential downward trajectory.

A sustained downside push might spotlight the 153.115 support level as an area of interest, while an upswing could potentially retest the 50% level, highlighting the pair’s sensitivity to momentum shifts and key technical levels in shaping its future trajectory.


The EURJPY’s resilience in 2023, marking its fourth consecutive year of growth, reflects the intricate battle between the Euro and the Yen, driven by diverging central bank policies. Despite a late-year downturn, pivotal technical levels like 153.115 and 158.568 signify a tug-of-war, highlighting the pair’s sensitivity to market shifts.

Sources: Reuters, TradingView

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.