EURJPY Breakthrough

After reversing from the 137.74 level and the bullish trend line, recent EUR/JPY bulls have triggered a breakthrough at the 140.82 level. The retail market has become more active in shorting the currency pair, which supports our view that we must further move upwards. Given the resistance we have seen here before, the price is rapidly approaching the initial target of 143.80, and traders should monitor the price trend here. Long term guard above 140.82, target 149.83. MACD is approaching a positive number here, indicating further bullish outlook in the future.

Pay close attention

The decline in the US dollar and pound this week is very favorable for the euro. In addition, the euro benefits from more hawkish expectations from the European Central Bank. Due to the record high inflation in the eurozone, many participants now expect the European Central Bank to take more proactive action for the remainder of this year. At the same time, the Bank of Japan remains committed to maintaining negative interest rates. However, given the sharp fluctuations we saw the previous week, traders should be wary of any signs that suggest further intervention by the Bank of Japan.