EURJPY trades 0.55% higher to start the week amid the broad pressure on the yen following the Japanese election. As noted, EURUSD has opened a ~50 pip buffer with the recent pullback low, helping EURJPY to extend its substantial topside breakout seen last week.
Last week’s advance confirmed a breach of two important resistance points on the chart; 163.49, the Sep 27 high and 163.89, the Aug 15 high. This signalled scope for an even stronger reversal, something that is playing out as we approach the significant event risk this week, which includes the Bank of Japan meeting, Eurozone inflation data and the US employment report.
Moving average indicators for EURJPY are in bull-mode and both 20- and 50-day EMA’s have supported the cross well in recent sessions. Price action has narrowed the gap to the first resistance point at 166.53 (July 31 high) and above here, markets will focus on 168.01 (July 26 high), both indicated on the attached chart.
The initial breakout point of 163.49 turns into the nearest support for the cross, however, firm support to watch is 161.85, the Oct 17 low.
EURJPY trades 0.55% higher to start the week amid the broad pressure on the yen following the Japanese election. As noted, EURUSD has opened a ~50 pip buffer with the recent pullback low, helping EURJPY to extend its substantial topside breakout seen last week.
Last week’s advance confirmed a breach of two important resistance points on the chart; 163.49, the Sep 27 high and 163.89, the Aug 15 high. This signalled scope for an even stronger reversal, something that is playing out as we approach the significant event risk this week, which includes the Bank of Japan meeting, Eurozone inflation data and the US employment report.
Moving average indicators for EURJPY are in bull-mode and both 20- and 50-day EMA’s have supported the cross well in recent sessions. Price action has narrowed the gap to the first resistance point at 166.53 (July 31 high) and above here, markets will focus on 168.01 (July 26 high), both indicated on the attached chart.
The initial breakout point of 163.49 turns into the nearest support for the cross, however, firm support to watch is 161.85, the Oct 17 low.
