FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.06% higher on the day at 146.71 at around 09:45 GMT.

Previous Week's High/ Low: 144.84/ 140.89

Previous Session's High/ Low: 146.71/ 144.29

Fundamental Overview:

German ZEW headline numbers for October showed that the Economic Sentiment Index improved to -59.2, beating estimates of -65.7 vs. -61.9 previous.

German Current Situation sub-index arrived at -72.2 in October vs. -68.0 expectations and September’s -60.5.

Further, the Eurozone ZEW Economic Sentiment Index stood at -59.7 in the current month as compared to the -60.7 previous reading and -60.6 expected. 

Hawkish comments from the European Central Bank (ECB) policymakers and improved market sentiment also support the pair.

Technical Analysis:

- GMMA indicator shows major and minor bias are bullish

- Volatility is high and rising, momentum is with the bulls

- MACD and ADX support further upside in the pair

- Price action is above major moving averages which are trending higher

Major Support and Resistance Levels:

Support - 144.82 (5-DMA), Resistance - 147 (Psychological mark)

Summary: EUR/JPY trades with a bullish bias. Overbought conditions may cause some pullbacks, but major trend remains bullish.