The EUR/JPY pair is trading in the green at 158.50 at the time of writing and it seems poised to hit new highs. It has rallied as the JPY was weakened by the Japanese Yen Futures' sell-off. The bias is bullish, but an upside continuation needs confirmation.
Fundamentally, the Japanese Trade Balance came in at -0.43T versus -0.54T. On the other hand, the Current Account came in at 27.7B above 21.01B in the previous reporting period. Tomorrow, the Japanese National Core CPI may report a 2.7% growth, while the German PPI could announce a 0.4% growth.
EUR/JPY Under Strong Upside Pressure!
From the technical point of view, as long as the instrument stays above the uptrend line, the bias remains bullish.
Its failure to retest it in the last attempt signaled strong upside pressure. Staying near the 158.50 - 158.65 resistance levels may announce an imminent breakout.
EUR/JPY Outlook!
A bullish closure above 158.65 activates further growth and is seen as a buying opportunity. The R2 (159.50) is seen as a potential target.
