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.
