The currency pair registered a strong upwards movement and now is located at 156.15, far above Friday's low of 151.40. The Japanese Yen lost significant ground versus its rivals after the BOJ. In the short term, the fundamentals could be decisive.
Fundamentally, the Japanese data came in mixed in the morning, while the German Retail Sales and German Import Prices came in worse than expected. Later, the Eurozone CPI Flash Estimate is expected to report a 5.3% growth, while Core CPI Flash Estimate may register a 5.4% growth.
Tomorrow, Japan is to release the Unemployment Rate, Final Manufacturing PMI, and 10-y Bond Auction, while the Eurozone should publish the Unemployment Rate and Final Manufacturing PMI figures.
EUR/JPY Strong Rally!
Technically, the rate jumped above the median line (ml) and through the downtrend line. These represented resistance levels. Now, it has reached the 156.23 where it has found resistance.
As you can see on the H1 chart, the rate jumped higher, registering a gap up. In the short term, it could come back to test and retest the broken downtrend line and the median line (ml).
EUR/JPY Forecast!
In the short term, the currency pair could try to close the gap up. Still, a valid breakout above 156.23, jumping and closing above this obstacle may announce further growth and is seen as a new long opportunity. The bias remains bullish as long as it stays above the median line (ml). The R1 (158.34) and the upper median line (uml) represent upside targets.
