EUR/JPY has been holding up quite well. However, economists at ING expect the pair to move downward over the coming months.

Downside bias remains

“Our bias would be that EUR/JPY struggles to sustain a break above the 145 level in an environment where central banks are actively looking to slow aggregate demand.”

“Typically, the Japanese have been more interventionist than the eurozone and on that basis – and given the forthcoming eurozone recession – EUR/JPY risks look skewed lower the next six months.”