HomeForex TradingPlay of the Day: Can EUR/JPY Prolong Its Uptrend?

Play of the Day: Can EUR/JPY Prolong Its Uptrend?

EUR/JPY has been making greater highs and better lows since discovering assist from the 157.00 psychological deal with.

Can the pair prolong its uptrend with at present’s potential catalysts?

We’re taking a more in-depth take a look at the 15-minute chart:

EUR/JPY 15-Minute Forex

EUR/JPY 15-Minute Foreign exchange Chart by TV

In the event you’ve been taking a look at EUR/JPY’s short-term charts, then you definately’ll know that the pair has been buying and selling in an uptrend since late final week when European Central Financial institution (ECB) President Lagarde saved the door open for additional price hikes in her Jackson Gap speech.

This week’s reviews from the area are largely supporting the ECB’s hawkish bias. Spain’s inflation printed greater than anticipated in August. Ditto for France’s CPI, which gained 1.0% m/m in August after a 0.1% uptick in July. In the meantime. Germany’s CPI maintained its 0.3% month-to-month uptick regardless of one other ECB price hike.

Will expectations of additional price ECB price hikes assist prolong EUR/JPY’s uptrend at present?

In just a few hours, we’ll see the Eurozone’s core CPI whereas the ECB will launch its assembly minutes and the EU will publish its newest financial forecasts.

We can also’t ignore that Uncle Sam will print a bunch of intently watched reviews just like the core PCE value index – the Fed’s most well-liked inflation gauge – and the preliminary jobless claims knowledge.

In accordance with Pippo’s Occasion Information, markets expect barely greater (learn: hawkish) numbers from the report. Which will increase USD and encourage positive aspects for USD/JPY!

If at present’s Eurozone releases assist additional ECB price hikes, or if the potential USD/JPY power takes different yen crosses with it, then EUR/JPY could prolong its uptrend.

For now, EUR bulls can contemplate the 159.00 – 159.30 space for lengthy entry alternatives. As you possibly can see, they line up with not solely the Fibonacci retracement ranges but in addition the trendline AND the 100 and 200 SMAs within the 15-minute time-frame.

The 159.80 earlier excessive makes for a very good preliminary goal however you can even goal the massive 160.00 if we see pro-EUR, anti-JPY developments within the subsequent buying and selling periods.

What do you assume? How excessive can EUR/JPY fly earlier than the week ends?

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market includes danger. Please learn our Threat Disclosure to be sure to perceive the dangers concerned.

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