EURJPY Moving Higher
The EURJPY falling wedge pattern trade highlighted last week has now triggered with price having broken above the 129.59 level. While above here, the initial target is the 130.69 level with a broader target above at 132.02. The solid rise in the Nikkei this week has seen reduced safe haven support for JPY, allowing the pair room to trade higher in the near term. Weakness in the US Dollar (post Jackson Hole) is also helping here, with EUR benefiting more than JPY from the move so far. While the current dynamic continues, there is scope for EURJPY to continue higher in the near term.
Key Data to Watch
Little in the way of key data for this pair this week. However a raft of EUR and JPY PMI readings over the week might have some impact. Looking ahead, however, the US labour reports on Friday are likely to be the main focus with some risk that current moves might fade out if USD recovers on a strong reading.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.