- EUR/JPY has broken above strong trendline resistance at 125.95, could see test of 126.70.
- The slump yesterday was short lived and held the short term uptrend at 124.72 and the 20 day ma continues to hold on a closing basis.
- Japanese government made a minor revision of the economic climate for the first time in five months.
- Director of macro-economic analysis at the Cabinet Office said, “We downgraded our economic assessment from the previous month but the government hasn't changed its view on the (sound) economic fundamentals.”
- In its monthly economic report, the government noted that "weakness is seen" in the economy. This is a slight downward revision from the previous report which said there was "weakness in some areas."
- Some weakness seen in the yen, EUR/JPY extending gains above the 126 handle, wekaness only below 125.80.
- Immediate resistance and supports are aligned at 126.27 (March 22nd highs) and 125.96 (5-DMA & trendline).
Recommendation: Good to go long around 126, SL: 125.60, TP: 126.25/126.50/126.75/127.15
