The analysis of the trade of EUR/JPY reflects the strength of Japanese Yen. Recently the EU is facing difficulties in vaccination process against the pandemic. The same process is going on smoothly in USA. However it has become a hurdle in the rising flight of Euro. Thus Euro is the weakling in the trading pair while Yen has an upper hand.
Vaccination Process in EU & Rise in EUR:
European Commission is playing a vital role in the current scenario. It has managed to buy enough vaccination at a lower price from its manufacturers. However the slow pace of the vaccination process is capping the growth of EUR. Thus it is making EUR vulnerable against JPY. The irritating bickering between some European Union states is also a glitch in this issue. All these factors hint that the economic recovery of EU will be far slower as compared to other countries. Therefore the rise in the worth of Euro does not seem to happen in the near trading term. In fact, the current scenario seems to persist longer thus it will likely further weaken Euro.
Yen, Best Alternative:
Thus if you are interested in the trade of EUR, then the best trading pair in the current circumstances is the pair of EUR/JPY. Yen is the best alternative for you. No doubt it is treated as a safe-haven. Currently it is serving the Forex traders as a trustworthy safe-haven. When the pandemic spread in its early phase, everyone witnessed the charm of Yen. It was a savior of the traders. But in the first quarter of 2021 you have witnessed a fall in the Yen. However in the beginning of the second quarter of 2021, Yen seems to be back on track. Thus there are great chances of advancement in this trading pair.