Watching for Major Trend Breakout on EURJPY

Since the the BOJ news release last week we’ve seen a change of tide on the EURJPY where the pair has consistently been making lower lows and lower highs. We are now looking at the pair fall back into a previously persistent range zone for the better part of last month approaching a rather strong support level around 127.530.

Should the pair break this zone, we will register the lowest lows we have seen since January last year and on retest of this it may be valid to watch out for short opportunities.

Important releases to pay attention to is the German manufacturing and services numbers released on Monday that came in higher than expected which is good news for the Euro and we see the currency fight back against the Yen in the wicks registered on Monday and Tuesday. 

However, the Yen is proving to be quite resilient, and attention is on the support levels s1 and s2 before we can pick any positions on the pair.