WIKIFX REPORT: Market Spotlight: EURJPY Longs Triggered

EURJPY Breaking Out

The latest EURJPY lengthy concept has triggered on a break of the 140.82 degree, following the reversal off the 137.74 degree and bullish development line. Price is fast approaching initial target at 143.80 where traders should monitor price action given the resistance weve seen here previously. Look to stay along above 140.82 targeting 149.83 in the longer-term. MACD is close to switching positive here, suggesting further bullishness to come.

Keep An Eye On

The drop in USD and GBP this week has been highly beneficial for EUR. Additionally, EUR is benefiting more hawkish ECB expectations. With eurozone inflation still at record levels, many players are now projecting more aggressive action from the ECB over the remainder of the year. The BOJ, meanwhile, remains committed to maintaining negative rates. Traders should, however, be wary of any signs suggesting further BOJ intervention given the wild moves we saw the week before last.