EUR/JPY was rejected at day's lows at 131.58 hit earlier in the Asian session, edges higher to session high of 132.48 following upbeat EZ data
- EZ economic sentiment index for October beat the estimates to print 105.9, while Germany reported a bigger drop in the number of unemployed citizens
- Daily Stochs are at oversold levels, and are showing a bullish crossover, pair could extend recovery further
- Immediate resistance for the pair is seen at 132.60 (session highs), breaks above could take the pair to 133 levels
- Next of relevance will be the preliminary inflation figures in Germany for the current month, ahead of the flash Q3 GDP figures and PCE in the US economy
- BOJ policy decision due tomorrow will also be of relevance as the c.bank mulls stimulus
Recommendation: Good to buy dips around 132.30, SL: 132, TP: 132.70
Resistance Levels:
R1: 132.60 (session highs)
R2: 133.90 (Double top Oct 26th, 27th)
R3: 132.92 (4h Kijun)
Support Levels:
S1: 132 (psychological level)
S2: 131.58 (session lows)
S3: 131.30 (Apr 30 low)
