EURJPY accelerates to the highest in seven years
The EURJPY cross accelerated steep rally on Wednesday, hitting the highest levels since January 2015 and on track for the biggest daily gains since Feb 3.
Yen remains strongly pressured by BoJ’s ultra-easy monetary policy, compared to hawkish Fed, with the ECB expected to lay the groundwork for rate hikes on Thursday’s policy meeting.
Solid Eurozone GDP data (annualized GDP grew by 5.4% in Q1 from 4.7% in the previous three-months and beat forecast at 5.1%) added to positive signals for the single currency.
Bullish daily techs support the action which eyes initial targets at 145.30 / 67 (2015 / 2013 highs respectively) and could extend towards 149.76/150.00 (2014 peak / psychological) on break.
Bulls so far ignore overbought conditions, but some price adjustment should be expected in coming sessions.
Former top at 140.00 (Apr 21( and rising 10DMA (139.33) offer solid supports.
Res: 144.54; 145.30; 145.67; 147.34
Sup: 141.81; 140.93; 140.00; 139.33