The currency pair has rallied aggressively and has managed to escape from a minor ascending channel, signaling that the bulls are in full control and should drive it much higher. The Yen is demolished by the Nikkei’s impressive rally, the index is trading at 20282 level, much above the 20058 broken static resistance and below the 20320 highest high.
The JP225 seems unstoppable on the short term, has ignored important resistance levels and looks motivated to climb much higher in the upcoming period.
Personally, I’m waiting to see a minor decrease in the upcoming days after the impressive rally. A minor retreat will force the Yen to appreciate a little versus all its rivals.
The Euro could receive a helping hand from the Euro-zone data, the Current Account could increase from 21.2B to 22.3B in July, moreover the German ZEW Economic Sentiment is expected to climb from 10.0 points to 12.3 points. The ZEW Economic Sentiment could increase from 29.3 points to 32.4 points.
Price has managed to break above the confluence area formed at the intersection between the median line (ml) of the black ascending pitchfork with the warning line (short descending dotted line). The valid breakout has accelerated the current rally. EUR/JPY is trading right above the 150% Fibonacci line (ascending dotted line) and should approach and reach the sliding line (sl), where he may find a temporary resistance.
