FxWirePro: EUR/JPY rangebound, EZ inflation data in focus for further direction
EUR/JPY extends range trade into the European session after recovering from multi-month lows at 128.67 hit on Monday. Yen's rally against Euro and Dollar halts as risk-on returns in the markets after Chinese equities rec…
EUR/JPY extends range trade into the European session after recovering from multi-month lows at 128.67 hit on Monday.
Yen's rally against Euro and Dollar halts as risk-on returns in the markets after Chinese equities recovered from previous slumps after PBoC injected liquidity into the markets.
Trend is definitely lower, the pair has been trading a falling wedge since July 2015, price action held below the cloud.
But EUR/JPY downside looked capped by strong trendline support which the pair tested on Monday's trade.
Stochs are in the oversold territory and on the verge of a bullish crossover. We will await for further confirmation to go long.
EZ inflation and German employment data due ahead in the European session in focus for further direction.
The next hurdle on the upside lies at 129.48 (session high Jan 5th), above which it could extend gains to 130 (psychological level).
To the downside, the cross finds immediate support at 129.07/00 (session low), below that 128.70 (trendline), could act as a major support.
