FX.co ★ EUR/JPY Imminent Breakout

The EUR/JPY pair has climbed as high as 157.89 today but now it has retreated a little and is trading at 157.63 at the time of writing. The bias is bullish in the short term despite minor retreats. JPY lost significant ground versus its rivals as the Japanese Yen Futures dropped.

Fundamentally, the Japanese and Eurozone data came in mixed in the last trading session. Today, the Japanese M2 Money Stock and Prelim Machine Tool Orders reported worse than expected. Tomorrow, Japan is to release the PPI which is expected to register a 3.5% growth. Still, in my opinion, the US inflation data should have a big impact on the EUR/JPY pair as well.

EUR/JPY Bullish Bias

Technically, as long as it stays above the uptrend line, the bias is bullish. The price has tested and retested the median line (ml) of the ascending pitchfork, accumulating more bullish energy before trying to jump higher.

The 157.99 and 158.04 levels represent the immediate resistance levels. Staging near these upside obstacles may announce an imminent breakout and continuation.

EUR/JPY Outlook

Jumping and closing above 158.04 validates further growth and brings new long opportunities with a potential upside target at the upper median line (uml).