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

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

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

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

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

We’re taking a more in-depth have 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 EUR/JPY’s short-term charts, you then’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 stored the door open for additional price hikes in her Jackson Gap speech.

This week’s stories from the area are largely supporting the ECB’s hawkish bias. Spain’s inflation printed increased 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 lengthen EUR/JPY’s uptrend at present?

In a couple of 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 stories 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 predict barely increased (learn: hawkish) numbers from the report. Which will increase USD and encourage beneficial properties for USD/JPY!

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

For now, EUR bulls can think about the 159.00 – 159.30 space for lengthy entry alternatives. As you may 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 timeframe.

The 159.80 earlier excessive makes for preliminary goal however you may as well goal the large 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 entails danger. Please learn our Danger Disclosure to ensure you perceive the dangers concerned.

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